Without a doubt this is the best real estate forum on the internet! 

I am told that the first attorney they went to wasn't able to help them and that he/she referred them to another attorney who specialized in this type of deal, but he wanted to much money so they decided to just pull a generic contract off the internet (I do not yet have the contract in hand or I would post it).Some big concerns I see with this.1.  

If so, I belong to a (free) private investor group that communicates over the Internet.

Check the classifieds, internet postings, driving around, dealers, local repo people and let them know you are looking for a home.

Then hit the internet websites and see if there are any recent sales to estimate current market value.

@John BlytheYou are way ahead of the curve already by asking this question on BP.I stared with $500.00 in the 1990s and began buying unwanted rural vacant land and selling it on the internet for twice what I paid (each deal).  

Deduct out any business expenses (marketing costs, internet, office, milage, etc) and you'll have your net profit.

So, while doing so some searching on the internet I came across a company that seems to assist with locating a lender for you. http://sandiego.rehabloannetwork.com/ Is this basically a niche mortgage broker?

If I could I would turn the power, water, cable and internet off to hopefully rid them of the property sooner.

(I'm guessing 85% LTV is out of the question.)My loan shopping focus has been on many local or regional banks, and tried one national internet-based bank.