I am on the East cost.

Some people seem to get locked in to one place they find, or a place a friend or family member is selling without really evaluating the available market.In a small town in East Texas I would think your biggest risk is a big player coming to town that can absolutely crush a smaller player. 

Their advice is sound.One thing of note: a lot of folks aks how to switch PMCs in the middle of a tenancy on these forums.

Actual foreclosure is on the East coast a Sherrifs sale and you can google the state and sherrif sales and the rules will be on the websites.. but its one of two process's either it requires a non refundable deposit if your the successful bidder or you need full cash at the sale.

But it sounds like they are just positioning themselves in the middle of your 'deal gone bad' to make some money for themselves.  

It’s like a scene out of a zombie movie as these people stagger down the middle of the street to the liquor store on the corner past my house.

the good news is that you're in the middle of a "masters" level education at this point.

I know the area like the back of my hand and believe Indiana has tons of upside to invest in.I came from a low-middle-class family of teachers.

I live near a local college and this is in the East Bay Area, CA.

Idaho, Montana, east Oregon, and Nevada are all places we could potentially go.