The experienced investors to be blunt...don't need a brand new person getting involved in real estate to try to "help" the experienced investor.  

Does failure count as experience" -Absolutely, as long as you learn from the failure and apply that knowledge to future endeavors.

It was not a pleasant experience for anyone involved.

Outside of real estate, I'm a business insurance broker working with small businesses, commercial realtors and anyone involved with serving businesses with less than $20M in sales.

And the 1031 would not apply anyway since she would have just inherited it and it is doubtful that she will be able to establish her investment intent.But that's neither here nor there since the IRS anticipated situations like this. 

Judgement, garnishment...that's going no where.I value my time at $300 per hour... so over the course of the next few months if you have 6-8 hours involved in chasing this money you will be close to breaking even..and that's before attorney fees.

or try for sale by owner (Craigslist)...We'll explain that there will be more fees involved, and that it will take much longer to sell (especially in this market, compared to a few months ago) - but that if they're not in a rush of any kind, that it's usually their best option...In our experience, the best thing is just to give people real advice, and if you can really help them out - tell them that.Small margins are also tough for rehabbers, who are taking on risks and spending lots of time and money on the rehab.Best,Sean

You may be finding it difficult to get an attorney involved because there is no money to be made on this issue.

I was hoping that I might be able to argue proforma rent to the insurance company or go after the insurance company for recommending the construction company who took way longer than advertised.It sounds like I don't have any options since my rental policy has language that says loss-of-use applies to the "rented part".

If the insurance agent is doing his job, the mortgagee would have to do it for you, and apply, since under insurance law and practices, you cannot buy insurance for someone else.