You have created what you wanted to avoid.

I saw here that an investor offers to purchase before she starts foreclosure to avoid going through the courts and nice that the owner at least gets something. 

Pick well, avoid the really low cost properties, and you can do fine.

I was merely advising him to get those ducks in a row to avoid the unnecessary scramble.

Linda is correct that the only way to avoid the 20% down is to make it your primary residence, however on occasion you can find a lender that will allow you to purchase with 15% down but that is rare and your credit must be excellent.

There is a plan to avoid this entire section (In section 3) but it is important for us to know about these restrictions.

Also avoid any deposits over 10k otherwise you'll have to source the funds and explain where the money came from (if still within the 2 months period), but if you wait 3 months then you'll be fine.

At that point for many panic sets in and they buy a piece of crap to avoid tax penalties.

Secondly, they do the apprasial to avoid any mistakes or bullsh!

Unless you plan to move out of the area you could use your equity as a downpayment on a rental property, and you would avoid incurring capital gains.