That article references California.2nd, I believe it's a misinterpretation of the new California security deposit law which limits security deposits to 1 months rent.

We’d appreciate your advice on the following points:-Drafting a Proposal: Is it worth drafting an official proposal with a commitment to a certain down payment to show our seriousness?

My question is, is there anything more I need to do to (i.e. issue a formal written notice of lease violation) in order to prepare for the possibility of keeping a portion of their security deposit to pay for eliminating the odor? 

Adding to the last point, ensure the new debt does not negatively impact your father's DSCR or other financial ratios in a way that might make it harder to secure the next loan.

I'd not been there for several months as is often the case and didn't know it but they'd instituted a new policy where buyers need to show an official ID when going up to pay after winning that bid, this due to the goofs who were wholesaling or whatever and would put their 10% down and then use whatever name, so they could then simply call their buyers and find whoever wanted to buy it and then that person would show up for the confirmation hearing and pay the balance.

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Sometimes we do that to secure a deal if it's a deal breaker, but we don't typically visit the houses.

The rate might not be ideal, but securing the property now is crucial—you can always refinance later for better terms.

99.99999% of all lenders are going to come after the secured asset, not the entity's other assets. 

Also check your states Security deposit laws.