Fearless Forecast: I've written extensively about the wonders of the Oregon Coast, including why I migrated north and why I believe many others will continue to follow.

For instance, if there was a total of $250K of debt on those properties that woud leave you with $350K of proceeds to use to purchase $600K of real estate.  

In what instances does a house get foreclosed on?

As noted above, a cash deal with all capital liquid in an account today is going to be taken much more seriously than a financed deal or a syndicated deal.  10% EM hard at contract signing and a 45 day close with no extensions will be taken more seriously than 3% EM hard after 30 days, with a 60 day close and 2x 30 day extensions.  

For instance if Mr X was a successful franchise operator and was looking for someone to handle things that you wanted to have done and you found a fixer upper of a franchise.

For instance if this is a $10M portfolio that's levered with loans totaling $9.1M, there's no equity that can be pulled but if this is a $1M portfolio with $100K of debt, its a different story.

There is a $200 cancellation fee to cover the extensive materials and supplies we give you when you join. 

For instance, there is a Lunch and Learn meeting the first Thursday of the month with the next one occurring Feb 6.

For instance, Fannie/Freddie don't have a prepayment penalty. 

In my experience, a suit for specific enforcement of a real estate purchase contract is not particularly complex or fact intensive that would lead to extensive time needed for discovery.