These I have found are real, striving parents, working their butts off to provide the best housing and school system for their children.My ethos in this approach is exactly why we at LaPlante refer to them as Residents, as we consider "Tenant and Landlord" to be dated terms and rife with negative emotion.

Has anyone else had this same issue?

Like anything it has to stay balanced but small gestures go a long way in reducing turnover and mitigating many "would be" issues. 

No emotions... no arguments.... this is the lease conditions, this is the eviction process for not following the lease terms... that's it.... no emotion. 

4.Tips to avoid similar issues in the future?

its an insurance issue. not much else to do.. 

It wasn’t an issue of “underwriting does review a file until it was complete”.

I've found many properties with title issues wind up with unpaid property taxes so checking on delinquent taxes, tax deed sales and lands available for taxes might help you identify some.

For the proceeds I have to pay seller I would have to issue him a 1099 right?

Class midwest issues.