Unless they are asking for a commission amount that is out of the ordinary just pay it and get the lease signed before something changes.   

Yes I can only imagine the challenges of going back later Thanks for info jay ya thats the first time I have had that happen and like I said the seller of this property is very lucky it was me he needed a deed from :)  we got it out same day they requested it. 

I had a previous tenant reach out to discuss a payment plan to reimburse the company for the amount she owes (she broke a lease and owed $$ on top of that).

What am i missing, I'm running out of time?

My idea was to set a date for an as is auction and put out signs, flyers, and social media ads for the auction the week leading up to it.

I too am just starting out in investing.

I’d prefer to sell out right (get the higher price from an owner occupant.) and then just move in to a true rental in the same neighborhood.  

The math that jumped out at me was -$1200/mo vs +$600. 

What Happens when a REVERSE Mortgage is MAXED OUT to the owners occupancy?

You could try to reach out to the city department responsible for it to rectify it, but if the tenants have already done so and they've confirmed nothing is wrong...