Agent finally catches on and submits new short sale package.

I will be sure to ask for documentation to find out what stage in the eviction process they are in.

@Oren SharonyYou can have a PI skip trace the previous owners and if you can locate them, see if they will let you submit a short payoff request to the mortgage services. 

Sounds fishy and sounds like they don't have proper documentation for what you are claiming.

Perhaps there is an issue with me relying solely on documents provided by PM company stating rental incomes etc vs actual copies of leases or other info substantiating rental income)? 

Here you are evasive to submit past performance of the properties you sell.  

I believe you can send up to 4 documents a week totally free.

(Would a common man understand that the $1,000,000 wasn't from selling lemonade on the corner) Biggest defense is to know your customer or investor, have them source their funds, and document discussions with investors regarding their transfers.

I submitted an offer on a property and it was accepted.

I am coming across conflicting articles (http://speakingofrealestate.blogs.realtor.org/2011/09/07/fraud-are-your-clients-using-reverse-staging/) and past posts; some adamantly say it is illegal, some say they are submitting a contract in an LLC or Trust and then assigning the next day (wholesaling the short) and that this is legal.Any insight is much appreciated, from either side, backed up with reasoning.