I am mostly just trying to understand how this industry operates behind the scenes. 

This doesn't happen with active properties on the MLS, so you have to nurture this behind the scenes, on your own.

I think what they were talking about was rebating the commission on the HUD statement such that it was less than 3% from the get-go and not some cash behind the scenes.

It all depends on the pricing strategy of the listing agent as well as the asset manager behind the scenes.

Unless you have behind the scenes info, the liklihood of a deal here isn't worth the time you're investing trying to figure it all out (unless you're just doing this for mental exercise that is).I suggest you come up with some sort of threshold/prelim test to filter out these type of situations and focus your time on properties that are more profitable and more likely to be sold at the price you need.Time is your most valuable asset.  

Quite possible with all lender contact info in place and cashiers checks in hand.As to the stigma of a house with former murder crime scene?

I have a background in Wordpress development and the behind the scenes interface is similar.  

Justin Sheley welcome to the Rockford area investment scene!

@Michael Smith  Oh okay makes sense, there is always some behind the scene going on to have some type of control.

There is apparently a thriving tech/entrepreneur scene here as well as several established Fortune 500s.