Any other alternatives - mediation?   

The proceeds from the sale are used to pay off the outstanding mortgage debt, and the borrower is released from any further obligation.Deed in lieu of foreclosure: Borrowers can voluntarily transfer the ownership of the property to the lender in exchange for the release from the mortgage debt.Bankruptcy: Filing for bankruptcy can provide temporary relief from foreclosure proceedings and may provide a way to discharge the outstanding mortgage debt.Foreclosure Mediation: Some states offer a foreclosure mediation program, where a neutral third-party mediator will help the borrower and lender to reach an agreement on an alternative solution to foreclosure.It’s important to note that not all of these options may be available for everyone and that the best solution will depend on the individual’s circumstances.

It seems that after taking out all the safety repairs items and adding all items that were not approved or that I had to redo, I ended up demanding a 2K reimbursement, instead of the 4K debt I currently have, according to the PM.Not sure how it will end, since the PM contract calls for a mediation, and since the amounts are relatively small and it could cost more to fight it in a small claims court, and then there is always an option to appeal to the Supreme Court.

At the hearing there will be mediation, hoping that a consent agreement will be signed, before it gets to the judge. 

(This comes to about 10 days before she is schedule to move out anyways).On the one hand I feel that she broke our contract and she must re-mediate the issues by removing the individuals or having them go through a background check  and add them to the lease, and remove the cats or sign a pet addendum / pay a pet fee / pet rent for her last month.On the other hand I feel that she could make our lives more difficult then its worth to push the issue since she is moving out in 45 days on her own notice.

Mediation and Legal Action, Disputes about who should cover the additional costs may lead to mediation or legal action in some situations.

Mediation or arbitration can be less costly and time-consuming than going to court.10.

if the seller wont sign a release your contract may have a mandatory mediation clause. normally hiring an attorney over a few grand of EM is no a vaible option since the attorney will charge more than you will get back. 

If you are using a standard PAR agreement of sale, after 180 days if there is no dispute (subject to litigation or mediation) the escrow broker can return the Buyer the funds. if there is a dispute, the broker will hold the escrow until there is a written agreement or final court order. i had this issue early in my career and I put 30 days instead of 180

I dont want to be a mediator so I just point everyone back to the lease which has things about noise and hours to be quiet.