I have been on BP for quite some time, almost 4 years now. I have been very close to several deal at various periods throughout that time. For one reason or another they never materialized. Then about three years ago ...

My background is in marketing but I currently work for the Department of Defense.

A foreclosure process continues and the defendant rebuttals with dual-tracking complaints to CFPB or even in judicial defense.  

@Ned Carey The interest rate is really 9.16% compounded monthly.

So I'll get off my small horse and just say that "lots of people do it and it often works because they usually don't care"  isn't much of a defense if the lender does care and also that you now have a situation where the LENDER HAS CONTACTED YOUR ATTORNEY TO SAY DON'T DO THIS. 

An umbrella adds a third line of defense. 

I do not want to be a jr. lender standing in front of a judge with a defense that says that I relied on the senior lender's loan app and qualifying procedures as my qualifying and documentation process.

I'm often accused of being defensive here.

If there is no deposit, this will be your defense in case the tenants come back and claim they paid a deposit.If there is a deposit, the seller should transfer the money to you at closing.

The "show me the note" Never was a defense, only an ineffectual theory by people who didn't know better, and by attorneys trying to lure in defendants as clients.