A week later, sends cancellation with release to liabilities offering refund of EMD in full.As buyers, we were highly motivated, put in lot of time, shopped around to get mortgage LoIs, tons of hours studying the property segments, tax exemptions and credits as claimed in OM by sellers.  

The best outcome for Home Inspectors is to claim that the house is horrible: don’t buy it!

Would he need to claim the 10k spread as forgiveness on his taxes?

Results may vary, but the most common thing to do is keep it in your personal name for 6-12 months and get a cash out re-fi through a regular bank.

We had a claim on a property that had over $30,000 worth of attorney's fees.

Isn't it amazing that all the helpful experts on the western PA area in this forum, so quick to thrust themselves into conversation and claim encyclopedic knowledge of the area, have nothing to say about little Rankin?

@Rahul Handa be careful of anyone who claims they can predict something like this.

Perhaps you could list the realtors that you've visited during these 4 days; it's unlikely that they'll give them a call anyway to confirm what you have claimed.

I regularly listen to the BiggerPockets podcasts, have read "Set for Life" and "The Book on Rental Property Investing" and I am eager to continue learning about the world of Real Estate Investing. 

If she comes back to claim anything, which is unlikely, she would first have to pay all the unpaid rent and late fees, plus any moving and storage costs.