My question is:What are the benefits/drawbacks of selling to the HRA vs selling it via traditional routes?

They have cash, you can assign your contract to them, and they can complete the deal within your 30 day closing you set-up with the seller.You can work with people who will use traditional financing and be owner occupants, that is called wholetailing.

If the seller of a pre-foreclosure has enough equity to do a traditional sale, then the bank doesn't have to approve the sale and the contract could be assigned.

Option 1 is far and away the best choice.  

Success is a process, failure is a choice

I have already been pre-approved for a traditional 30yr fixed @ 4.2%.

Tile is also more traditional in those parts of the country than wood. 

Your wholesaler should have a choice, reputable title company that they can send contracts to and close deals with.

Then I'll hopefully be able to go the traditional route. 

And of course there are probably new types of programs but this will give you a feel with out abusing an agent and let you check things out on your own.Best deals are bought with CASH,,, next best with quick loans  Next best with traditional snail financing.