I work with people after release very frequently and we stay in touch with them for long periods of time.If you could, please elaborate on your thoughts.

I don’t know why they wait til the very last day to release the tax documents.

If not, and you catch up all payments bringing the loan current, and the lender accepts payments and releases the foreclosure then you could rent it.

My experience is lenders will want the proceeds of the sale before they will grant a 'lot release.'

each year they release a very detailed report that is the answers from a survey of thousands of developers, investors, lenders, and institutional real estate firms about markets across the country and beyond.

I plan to reach out to a real-estate attorney too since my agent's only thought was to sign a mutual release and try to get my EMD returned.

Any suggestions on what may be the best way to address this possibility to the tenant and is it even a good idea to release a loyal long term renter that has never paid late? 

If you get quoted an outrageous fee... https://www.amazon.com/Havahar...Locate the hole that allowed them to get into the attic, place this at the other end, put some peanut butter in the trap, and release a few miles away.

You can also use a blanket mortgage, one note on several properties that provide for the release of liens on each property as you pay down the loan (so you can sell one property without having to refinance all the properties).

I signed the release of the earnest money and sent it to the title company so they can release the funds to the seller, however the seller still has not signed the release of the earnest money (its been 48 hours) and so my 20% down payment is still with the title company.