It's been 4 months since settlement, and of course in hindsight I realize (lessons learned>>) that worse things could happen than loosing $6k in a deal gone wrong, that I could have maybe tried harder to find a way out, and that decisions should not be made under pressure when avoidable. 

Once you create a legal framework, it has budgetary implications—and states can respond in a meaningful way.”   

Title requirements have changed, settlement procedures have changed, try that old double closing using the other guy's money. 

@Randall Rzeszutko Just settled on a property and did NOT pay anything out of pocket to the lender until settlement. 

They have an option of debt settlement and credit repair.

Thats what i have mu HELOC for , the last 2 deals I did , settlement was in 7 days .

You probably paid some deductible property taxes at settlement and purchased a rental dwelling insurance policy (the policy premium is deductible if paid last year). 

He told us to come next week  to see if any settlement could be reached.

They also "strongly urge" you to use their own settlement company which I though was pretty shady and obviously a RESPA violation.

Knowing that it has been deeded back to the bank, was this some sort of out of court settlement?