. -$43,000 (closing costs and Realtor fees unless you are the Realtor, use 3% vs 6%)-Seller Costs ?

Outside of that, I would recommend a broker, but you may need to pay a fee.

There are no re-connection fee's. 

I get that the upset price is the amount the price set by the plaintiff and court fees.

Creditor name, date entered, amount, attorneys fees if any, interest... you would reach out to the creditor for a written payoff statement and release (once paid).

Just remember to keep the two documents (lease and option) separate;  one should not refer to the other.Option fee should be non-refundable, however if you want to credit the option fee towards their down payment WHEN THEY BUY, you could structure it that way.Personally, I would be very careful about how you go about 'crediting' $xx of monthly rent towards their down payment. 

My thoughts have been trying to figure out pitfalls of late fees, and how to bi-weekly could affect eviction if needed. 

The current mortgage is $1486 and it is being rented for $1600 with property management fee of 10% ($160).

You will want to decide what is most important: lower fees, quick processing time, proximity to you.

In some states the owner has the right to redeem, repay the amount sold for at auction plus some fees, for a certain amount of time After a tax auction.