You might have to check with local building department to see if the dwelling is still suitable for occupancy.

Old listing agent wasn't trying to help me so that was a dead end and so was contacting the bank reo department since they do not own the house yet.

I supervise the credit and collection department in a large wall street company.

I'm sure that's a "dear" proposition!

This will save delays when the checks are issued. 4)There may be extra money available for demo and debris of the structure and for fire department charges.

Just call the building department and ask.

In the state of Florida the Department of Financial Services has prescribed items that are to be included in a file with private financing.

It's my understanding that for every deal they close like this, they get a huge credit towards the recent mortgage company lawsuits that were curiously brought about by the justice department.

I am not the principal of the company but am in charge of the acquisitions department.

I don't think your Scenario #1 is reasonable since banks won't talk to you prior to foreclosure (sheriff sale) and it goes to another department after sheriff sale (REO).