What are my option here, I do not understand why $1400 was taking out of our security deposit for no reason.

I'm not trying to take advantage of her, but I do want to secure something before anything bad happens and the house is left to the state. 

I would try to secure private financing or get a partner, otherwise.

Talk to a securities attorney.

@Andy Mirza frankly I did not trust the party that put me on title so I secured an attorney to navigate the issue and act in my best interest.

Hi Tom,So in your case you are not house hacking to secure the favorable financing that you could get by living in one of the  units and therefore obtaining a purchase money loan for your primary residence since your are buying all-cash.

As @Maxwell Manatt points out- does everyone know their role and what is expected from them - because unperformed duties do not raise someone to the level of a sponsor/issuer and may create the presumption that the specific person is indeed an investor who actually purchased a security. 

@Tyler HoganUnfortunately, the rules do not allow for the use of solo 401k owned real estate as security for a personal loan.

You can sue for breach of contract, can't you, Kon Zel?

Would it be intelligent of me to secure a title company of my own choosing?