They decided to sell and wanted $50,000 more than comparable units.

I just contacted a RE agent whose information was on a foreclosed property that I've been trying to purchase for over a year. He said that he did NOT have it listed yet because Fannie Mae (the owner) was remodeling it...

And yes, it does count against Fannie/Freddie if personally obligated. https://selling-guide.fanniemae.com/sel/b2-2-03/multiple-fin...

Trying to learn about what properties sold by banks are selling for (REOs).

Technically, what's happening is that the MIL is selling her residence and giving all of her children a portion of the proceeds, to do with as they will.

You sell the house for 190k. 

---So, get a GREAT property inspector NOT recommended by the turnkey company to avoid bias.2) Misrepresenting Property Class - have seen many turnkey providers in Metro Detroit area sell OOS investors Class C properties as Class B.

I asked why the seller would sell the house this way.

My realtor didn't give me a sense of what the "better" or "safer" areas or more affluent areas of JT are and I don't know where to look for that kind of information. 

Just use Propstream's skip trace function and contact these owners simply asking if they would like to sell their property.