Another option is to sell the house for them for 220k that leaves 140k minus lets say 10% for transaction fees (agent, title, etc) that leaves you with 118k before tax.

In addition, let's assume that all other expenses were correctly estimated including property management fees (10%). 

Slightly higher interest and fees than just a regular mortgage.

the banks are simply cross selling their  products   figuring the more connections they have with you - the longer you will be a customer ...often they will offer an incentive  like a slightly lower rate  or removal of a loan fee  in order to  entice you to open up an account ….. don't overthink this  option …..all the best

Attorneys can put a deal together (which I have done) but we cannot receive the broker fee for it. 

He was a fine tenant and was regularly late paying the rent, but did not complain about paying the late fee.

They use a flat 11% management fee (no first-month fees or anything), which incentivizes them to keep tenants there for a long time.

a simple e transfer gets them paid and being that it is a second job for them, their fee should be fairly cheap.If you have about 20k in cash on your own, i would look to secure another investor or solicit friends and family. 

Am I correct in assuming that the difference in the estimated payoff and UPB are any accumulated arrears, fees etc?  

If I did not take out the property management fee and vacancy it would be 80k for the gross rents.