Unfortunately, it is very much the case that a lender does not need to agree to a short sale. But, now that you've offered to try and net the bank extra money, it is time to determine whether just letting the home go is a safe "business" move for you. Let me know if I can help.
It would be of great benefit to you to meet with an attorney to discuss all of your options, of which you have several. But, to answer the specific questions, yes, you can speed things up by short selling your unit rather than waiting for the lender to foreclose. A short sale could be completed in less than 90 days, while waiting for foreclosure could take at least 6 months. The HOA dues, unfortunately, are a personal obligation. So, time is not on your side. But, you still have options. So,...
You need a real estate attorney who has handled these matters. I am certainly not the only one, but would be happy to help. There are risks for both parties, and you'll need an escrow company to assist with the payments. Robert.
Absent something to the contrary set forth in the deed in lieu document, such as an agreement to continue to insure the property (unlikely since you are no longer the owner and thus do not have an insurable interest), you are no longer legally liable to maintain the house (that is now the bank's obligation) and it seems to me you could cancel your insurance tomorrow (why are you waiting the extra week?)
It sounds like you have a good "case". Certainly, on its face, it appears that the Landlord is not honoring your agreement, and it looks like you'll need an attorney to get involved to get this solved. HOWEVER, may I suggest the following. The person who gave you the bid must also have a sense of "why" this occurred. Both you and your landlord will each spend money on attorneys battling this out, and, at $500, it is fair to say that at a minimum, together you will spend $500 on attorneys and...
Of course you can get an apartment with just your name on it. Just make sure the lease allows you to have a roommate, or, conversely, make sure the lease doesn't state that you are the only one allowed to live there. For a fairly nominal fee, I'll be happy to review your lease if you want to make sure you've got the flexibility you need.
My first question re buyer's termination is: what does the contract provide? Just because they wanted to close in 9 days does not absent an express change to the form agreement translate into a waiver. I have to guess they would still have wanted to do an inspection.
As the behavior of the agent, I cannot say unless he/she knew what was up. Consider making a complaint to the Arizona Department of Real Estate if you feel the agent harmed you. However, if, in the end, the buyers did have the...
Unfortunately, not that I am aware of. The bank merely lent you the money to buy the home; the issues you are having is with a third party. But even in a bad market, you may still be able to short sell your home; don't rule that out as an option. I'm not suggesting that walking away isn't best. It's just that you may have more options than you realize.
I get this question frequently, and, unfortunately without having a copy of your lease, it is difficult to give you an answer. In addition, your statement about the new owner having to honor your lease until its natural end assumes the owner purchases it as an investment; if it is purchased as a residence, you will only be permitted to stay for 3 months. Plus, there are other prerequisites, such as payment of fair market rent under the lease. Please let me know if you'd like to discuss this further.
Honesty is always best to avoid any assertion of fraud. I'm guessing you are concerned about fraud with respect to the new home loan, so, assuming you made a good faith effort to rent out the property, I believe you should be fine should such a claim be made against you. But "mortgage fraud" has many meanings; it may be best to consult with a local attorney to make sure you truly are without risk.