@Wayne Brooks Thats right...there concern is the validity of sale and proper notices beforw the sale..totally agree...I will try because the seller is willing to sign any document giving the buyer or the title company garantee if someone comes back and redeem the seller is willing to pay back the title cost and refund the buyer.@ Jay Hinrichs@Michael BiggsThank you guys for your input

But I suspect the quote from the surveyor you received is not far off the mark; it's ridiculous how much vendor prices have gone up in the past year or two. 

Only flaw is that they could technically say they never received a copy of the report, which they are REQUIRED to receive a copy of in my state in order for me to hold the deposit.

I have not received their metrics for vetting new tenants or any tenant backgrounds, but they told me two units are section 8 so at least some idea of stability there.

You don’t “get around it”.....the receiver is owed money which will have to be paid, in addition to any liens, fines, rehab costs, etc.

If you have received any rent or income from your ownership then that would demonstrate intent. 

I've tried calling and texting this tenant but I have not received any replies or responses.

Documents get recorded with the county recorder/clerk of court office, the same place your deed got recorded.  

The client will have to sign a document at closing that no funds have been paid out that are not reflected on the HUD.

A tip that I received from one of the Bigger Pockets' books was to include a family picture at the bottom of your letter.