Always have good relationships with tenants and try to resolve issues quickly and out of court. 

@Mike Nelson In the 200+ HUD transactions I have done, I have received my EM back a handful of times for only the following reasons:-The property was vandalized after my contract was accepted-The property was damaged by storms after my offer was accepted-HUD could not convey clear title due to an issue(I had a good one that I was willing to hang in there basically forever until it was resolved but they finally terminated me and refunded my EM) 

Taking that the down payment should be resolved through the rent to own process, I would opt that the credit score be the only thing out of whack because that is easier to fix. 

But the thing that is really galling me right now to where I'm about ready to really chew someone out is that the firstkey legal people simply refuse to discuss anything with me and aren't even telling me or the other contacts I have what is actually going on and why they can't figure out a way to resolve this issue.

Any unpermitted work could need to be resolved before they issue the entitlements.

I know I can send and receive text messages in the software so I don't have to give them my personal phone number ever.Every issue I had was resolved by their customer support.. which is GREAT by the way. 

If you did in fact call a bandit sign and were somehow connected to one or my colleges I'd like you to PM me so we can resolve whatever may have happened.  

I'm pretty sure I'll be able to get financing, the issue has been resolved.

The landlord refuses to correct the problem and she is looking to see if there is any action she can take to get this resolved.

The option of the buyout, termination agreement gives a good way to resolve the situation and move on.I agree in this situation if the guys is moving out of state I'd push for him to sign a buyout. hard to take to court if he's not around.And life is life we can work with our tenants and should have stop gaps that address this type of situation, but it doesn't mean we have to be push overs and  not be compensated.Usually fee for mutual termination is 2 months rent and your return deposit if apartment is in good condition per the walk thru.