However, depending on how the deal is structured, its possible the buyer could successfully claim an equitable interest in the property. 

Walk away now, they lost me at Quit Claim Deed and no title insurance. 

(I'm pretty sure he has a substance abuse issue)If he were to quit claim the house to her so she had 100% ownership would that raise any red flags with the title or potentially interfere with my deal when we go to close?

My question is about who pays (and therefore also claims on income taxes) insurance, interest, and property taxes in each of these strategies.

However, others argue against it due to its expenses, being held to a higher bar (can't claim you "didn't know X"), and some off-market buyers are wary if approached by someone who is licensed.

I'm pretty sure released can mean different things, either paid or the person filing the claim rescinded it for some reason. 

Other reasons they foreclose at total debt is that they can also now claim that as a write off. 

What happens when someone claims they put their money in, but you don't get it?

Still not the huge response rate many people claim when using these types of "handwritten" letters, but I attribute that to the market conditions here.

Even with frivolous claims of illness when they are not near the situation.