My predicament is that what the landlord told me (in writing) doesn't correspond with what the applicants told me.

While I don't have any active deals right now, my domain here  is my company name: www.capitolwealthbuilders.com My predicament is this...

Is this possible, legal, moral?  

Moral of the story, the CFD in this type of transaction is not the proper instrument and many not grant the indemnity one might think.As mentioned the tactics described by the Note Guy are considered "Circumventing Foreclosure" and are forbidden by law.  

It's not morally right to do such.

I think making sure the sponsor is moral, ethical and honest is very important, but you also want to be sure they are operating a business properly and not just winging it. 

I do not have the faith of a priest in Christ in the moral compasses of the top private finance professionals of the USA.

Moral of the story: you make your money when you buy is very true statement. 

The best place to find deals may be "off market" on properties that are not listed anywhere ... this takes legwork and skills, and can be a slippery slope morally and legally (but solvable to be 100% legit if you do it right), but this is where the biggest discounts can be often had.

Contractor: "uhhhhh I'm sorry"Moral of the story, dealing with certain contractors is the worst!