I can explain why, because I buy Subject To.

I have been buying and dealing with Real Estate for about the last 30 years.

You said you're trying to buy the house from someone who is in foreclosure (not yet foreclosed on).  

Here's a detailed guide on how to screen applicants: Application Screening Guide 

Investment Info:Single-family residence buy & hold investment.

Fico while they will look these are not credit score driven loans like those buying rental houses or houses to live in...

I did buy a website which was expensive and produced nothing, still trying to decide what to do with that sunk cost.

I am guessing they probably raised $15-25M from investors for the deal, so while the bank would still be covered investors would appear to collect maybe 10-20 cents on the dollar if they were to liquidate.if that's the case then I don't see buying one year really does anything unless I am missing something ? 

We don't buy in warzones and we explicitly verify that the PM is experienced with Class C/D properties and tenants and Sec8.  

I have no prior investment experience but after living in Paraguay, and reading some books about real estate investments, I think I'm ready to buy my first property.