Don't lose sleep over this...don't sell...Revise the lease agreement to state something like "lessee (Name) has 'first right of refusal to purchase'" ....something like that. 

The end result is, I didn't lose money in a bad situation but a hard lesson: If it is too far for me to want to spend my energy and time on, it isn't for me.

I always like to use the following example: "You can buy the best building that is fully occupied on 5th Avenue in NYC or on Rodeo Drive in Beverly Hills but if you make a bet on the wrong person and they run it into the ground then ultimately you will lose your building to the bank and it didn't matter that it was the best building when it was acquired".

This makes your strategy a 90% likelihood of losing money.

I asked if it was against her or the property and she said "The impediment is to title insurance ONLY" If she loses this suit does this mean a lien can be put on the property?

If not you might lose all your profit in the deal.

I was losing interest in this until @John Thedfordcame riding in on his save the agent stallion. 

I absolutely do not want to discourage you from investing as I feel that it is likely THE most incredible source of wealth building, but you need to know the ins and outs as much as possible to keep from losing your shirt on a deal (or being caught with no money in the bank in the event something unfortunate comes up for you or your family).As for HELOC, I don't really have any experience with this, but I generally stay away from things that pull my personal assets under the gun should a deal go bad.

Even if there were no chance of a deal, this is experience and education building.If there's an opportunity with nothing to lose and something to gain, take it!

I do this to discourage people from applying unless they are seriously interested if they failed screening or if they walk away then they lose app fee.