We still owe him around 7k(includes remaining balance of the bid and the extra work that we agreed upon).

Taking the loss now remains on the table, but plan A makes more sense if it can be pulled off quickly (at least in this particular deal).

I presume that I can remain a passive investor in multifamily...are management fees similar percentagewise to SFR and 2-4 unit?

Does anyone have advice on how to find a third-party escrow service who is willing to perform like a title company, but for the sale of a mobile home without real property (hold a deposit, allow me to do an inspection of a mobile home, then if acceptable, collect clear title from the seller and collect the remaining funds from me and disperse them)?

If the bank won't loan you the remaining $40k, you may be able to find a seller that is willing to carry it back by way of owner financing.

Never be afraid to ask anything from anybody because you never lose anything by asking, but can lose everything by remaining silent.

The upside to all this is I remain extremely positive about everything because it can only get better right?

Regarding squatter's rights, every state (and Commonwealth) in the union has public policy laws favoring highest and best use of real property and discourages land remaining fallow for extended periods.

Richhttp://www.deseretnews.com/article/705357974/Job-openings-drop-as-hiring-remains-elusive.html?

Remember "the owner would like to remain if possible" is a suggestion from somebody who does not have an interest in your business.Only an idiot would bite on that one.Don't take the bait.