Attempting to collect from someone who has no incentive to pay will drastically lower your chances to actually get the agreed upon money. 

Was that with Smart Home Choice by any chance?

I would call them and find out if they think you have a reasonable chance of being approved.

There is almost zero chance that you bring this issue to a head and they sign a lease with a good future prospect for the tenancy.

Quote from @Richard Schubert: I have offered sellers the chance to sell to me with owner financing many times and can say it’s pretty unsuccessful for me so far.

One of the reasons most developments have Mello Roos is that cost to put in all the public improvements are so high that it will stymie growth if the developers have to front it all.

No chance the PM should go there ahead of time.

It depends on the neighborhood and maybe even what improvements that hypothetical home built in the 1970s got. 

And, 20 years ago, IF you were willing to break US laws, it had a good chance of working.  

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