Any Lawyer recommendations would be great.

I am not a lawyer ..I think owner gone is never coming back and at best one more skip trace could be tried and then it is time to realize he will not be found and that he no longer has any claim to anything as it seems silly to have $38K rent in a jar, mattress, under floor board, etc.Fair distribution of $38K is another matter but maybe donate it to a good cause in the neighborhood (boys and girls club, a park, other).

Before I ask my question, I know that whatever answers come do not count as legal advice, and I should ask a lawyer, lender, title company, before anything is finalized.I have use Limited/Special Power of Attorney before for some real estate purchases, and I am planning to sell some properties, then 1031 them into others. 

sellers credit getting hammered lawyer letters.. and complaints to the AG.. 

Get a lawyer ASAP.

After hearing the lawyer talk about insurance companies and things he has seen I would never buy in my own name again.

How much does your lawyer charge for an eviction?  

If this guy is worried about paying a lawyer to draw up his paperwork and then you backing out, he isn't a real lender as that is just a cost of doing business. 

If you get paid you are good to go otherwise you turn it over to your lawyer to handle.

I've heard a good lawyer could find holes in that setup and wipe you clean.