Keep in mind, they have not been convicted in a court of law and these are only allegations at this point.

If it does go to court, you can have the attorney add in legal fees to the suit.I am not an attorney, but work with one often for evictions and other things.

A Court order would be required.

The tenant is contesting it in court though, may apply for state assistance, etc and it is going slow.

You are required to invest all proceeds but you can add more to replace debt. 

I think if this part of the business is uncomfortable for you, hire a good property manager or lawyer to correspond with the problem tenants, and let them run point on any eviction proceedings. 

Here is a list of lenders who can help:https://www.biggerpockets.com/...The refinance proceeds would belong to the IRA, you can use those funds to make improvements to the properties your IRA owns, or reinvest and buy new investment property. 

Due to an ongoing court issue, lawyer fees are adding up and I'm tight on money.

Do you think they're going to come back some day and demand their deposit back, or take you to court if you fail to refund it?

These are suggested to get us to the 140k "market ready appraisal.My PMC is willing to let us pay back over time, yes, at what rate, I'm not sure.If we sell, we could use my wife's credit to buy a new property with the proceeds (we would like to get into a short term rental.)