I'm being told those loans have more holes in them than swiss cheese.Anyway if you have the money you can fight this and possibly win.

Under the deed of trust the lender can pay or advance funds to pay HOA fees, insurance, taxes, etc. and make that a part of the loan outstanding.

Just from the amount of the outstanding balance it sounds like it is very unlikely you will be able to negotiate a payoff.

Based on the contract, the credit from seller for fixing outstanding issues with the house was maxed out based on the law (2%) so I am not sure if that can have any effect on the credits for deposits or prorated rents. 

That was an all-day extravaganza of fighting with connectors.

But if you have evidence the paint and flooring was new when they moved in and trashed when they moved out, the odds of a tenant fighting you are incredibly low. 

They won't close a deal if there are outstanding liens on the property.As long as you're going through a title company closing and have title insurance, an attorney probably isn't needed unless you're looking to get out of the deal.

I would like to err on the side of paying a bit more to an insurer that actually provides insurance than to try to shave off a little dough and be stuck in a constant fight to collect on legitimate claims.

Thanks Bill, My 3 daughters are trying their best not to fight with each other.

However, if the outstanding balances are too high or it's more than one loan that they are screwing up, then I avoid them.