We are midway in the eviction process to take possession of the property. 

It might be collateral IF you would be willing to physically deliver into a bonded escrow(aka give up possession), but imo, to use as a down payment you would need to convert to cash and deliver it to the escrow agent.

Due to this counter suit, the lawyer recommended settling for possession.

Saw another little gem, $19K asking on a gorgeous lot - roof had fallen in with all possessions inside.

An installment contract is where possession is granted to an asset but ownership is deferred until full payment.

Should I attempt adverse possession?

Also, I noted that there was a writ of possession awarded to them at the sheriff's sale.

Then, after they have moved out and returned possession of the unit to us, we calculate "pre-paid rent" for the days following the actual date they vacated the unit and it becomes a credit on their account.

We are both disabled and the wife has PTSD and this landlord has boundaries issues and is very possessive of the property.

When we took over possession of the property we immediately sent a warning to the tenants that they need to remove the dogs poop.