Therefore, you cannot take late fees from it.However, if you complete the eviction process through the court system and the court awards you possession and the monies owed (which they almost always do), at THAT time you may use the security deposit money toward anything owed to you before refunding anything left back to the tenant.

The steps you'll need to take depend on whether the tenant files for bankruptcy before or after you get a judgment against the tenant awarding you possession of the rental.Tenant Files for Bankruptcy After You've Won PossessionIf you sued the tenant for eviction and won a judgment for possession before the tenant filed for bankruptcy, you can proceed to evict the tenant, even if the tenant then files for bankruptcy in an attempt to stop the eviction.New bankruptcy law vs. prior law.

First thing we did was to ensure the seller still had possession and right to sell, which was confirmed by their bank.

- Yes, as long as you haven't taken possession of the proceeds.

I am sure the previous owners put quite a bit work on it, and it possessed its uniqueness.

At that point you can take possession without an eviction. 

Some websites contain some of the information required, while others possess nothing.

i would maybe consider offering them a few hundred dollars and having them sign something agreeing to vacate and that they are not due anything else back as far as possessions go.  

If so, before or after the new owner takes possession of the Title? 

The real estate industry operates in the "Trust Economy" and trustworthiness is a possession my team and I hold dear.