The advice I received from a seasoned agent near me is going with a agency that has quality training and interview them on their business. 

It's one of the things necessary to verify identity and it's important to have so you can go after them later.Turn it over to a collection agency so it shows on her credit report.

Insurance is one of the main reasons why the underlying lien can be called so I want to see if I can connect with an insurance agency that has experience with this type of deals so that my buyers could get affordable/reasonable prices as the insurance companies I know are charging high prices. 

Some non-agency programs might let you push to 85% LTV on an owner occupied.

@Keith Manchester, I would contact with several insurance agencies, to include the one you may be dealing with already.

I think it's more about adhering to contract law and being careful to not violate agency laws.

I am not sure if this pertains to this specific situation, but some payments are not being made at other agencies because the workers in charge of payments at the Federal level are furloughed.

The title company that I like to use is Hometown Title Agency.

Let's also point out how interesting it is that a mainstream mag (sponsored in no small part by financial services companies) is even writing about private placement real estate.

@Keith Linne I agree this sounds like an Agency deal.