In this way if tenants dispute items and it takes awhile for CAM to get sorted out then new owner can pull from seller reserve and then whatever is not used for short fall is then released to seller.Even if expenses are fully paid for by tenants you still want to keep costs as low as possible an still save where you can. 

If there is a dispute about who is entitled to the EMD -- which sounds like the case here -- the escrow agent (often the title company) will wait for joint instructions from the parties. 

In a commercial setting, the tenants and the subtenants handle their disputes separately from the owner.

Any resolutions?

When you say your wife does not want to sell it to you, I'm not sure what you mean - if you're divorced, there was (I assume) some resolution on ownership of the house & responsibility for the mortgage? 

Yes, the neighboring homes being hot is exasperating the issue, but I'm thinking I can show some goodwill (and hopefully provide resolution) by having the unit serviced. 

I have a masters degree in accounting and operate a tax prep and tax resolution (I am an Enrolled Agent) office as well. 

They can be disputed for the first few months of the year, after that you are stuck with them.

Once your loan goes through loss mitigation and if there is no resolution then the bank will either foreclose or sell your loan in a very large pool to a hedge fund. 

For example, Congress may pass a federal law that specifies how states must handle child custody disputes when state laws are different or the process by which a person winning a lawsuit in one state can enforce the order in another state.Now, if you wanted to be protected from a rogue judge or jury and be judgment proof.