The demise of Lehman brothers, the bailout of AIG, as well as other lending institutions failures can all have been averted if they had exercised one premise above all, safety before profits.

Short sales are an exercise in frustration.

I always tell my students not to get too exercised when they see a lousy IRR in the first year or two.

You are now playing the "other man's game" and ought to recognize that your training and skillset probably needs enhancement.

They technically always had the right to possess at any point they decide to exercise it as part of improvements.Now if there was no easement they will probably have hearings about the issue if they can't get the owners to agree to relinquish the property they need, and then may have a court order with a purchase amount and pay for the property they take.

You should do the following exercise. 

(Not so fortunate for him.)With that being said, you still want to exercise caution in dealing with his property.

Do a mental exercise and add that $200 negative to your new mortgage payment  of the refi and see what the cost of that money really is.

One of them was exercising his contract.

Agent Flat out refused, said he will advise his client (seller) not to take that deal, not for 20k down.He countered with $20k down for a lease purchase with seller collecting the rents to go towards purchase price until I exercise my option to purchase.