@Elizabeth Martinez,  based on what I've read and listened to, for time efficiency like @Christian Kenworthy mentioned, advertising sounds like the route to go for general motivated sellers/high equity, not necessarily pre-foreclosures, and start small with volumes that you can handle in terms of incoming phone calls to screen, then put them on a schedule of repetition and follow up over several months.  

In the Houston area, which I assume is like most major areas, there are companies that just handle short sells.  

A dual agency is when 1 broker handles the transaction directly or through 1 salesperson.  

Since in the case of the OP there was no broker for either side, then deposit money should have been put into escrow with a tile company (or other business that handles real estate settlements for that area).

Will need to figure out what would be the best way to handle that.  

Is right this is a touchy subject for all hands so let your Attorney handle this.

@Shari Peterson probably knows a title company in your state that can handle this sort of thing.

And any PMs out there, if you forgot to collect the agreed upon deposit from tenants what would you suggest as a fair way of handling the situation?

We did the paperwork, inspections, closing - all remotely, and the property management company handled the placing of tenants.To give you an idea of what the numbers looked like in my experience, here's what I got.

I'll let Shari handle the question @Shari PetersonFrom my point of view, I saw over 100 people try to use transactional funding in the past six years only to find out their end cash buyer did not work out.