@Julie Orth That headline by WAFF was not correct - Huntsville is actually 10th in the nation according to the news clip;  I think they meant to put Top 10 in the headline. 

Now almost 2 months later the buyer is threatening legal action if I do not put 4K in escrow, do I need to even consider this?

Looking to take action and find a property as soon as possible.

If you bought a company - with the assets, liabilities - then you would have the right of collection and the joy of being sued for the actions of the past principals.Doesn't starting day 1 sound a whole lot better!

Should there be any uncertainty,talk to a real estate attorney but not taking any kind of action puts you way at the bottom in the learning curve to say the very least. 

If so, you'd likely want to keep an eye on this news.

Now you just need to focus on education, networking and taking action.

According to DS news, roughly 2.1 million homeowners are at risk of foreclosure.

If you ever have any questions, the community is great at provide actionable feedback.Joe

Contact an attorney to see what your best line of action is.