The only time we will not make an offer site unseen is if we run into a situation where an owner or a realtor won't accept site unseen offers. 

They're not out to just make money, but take care of homeowners, business owners, partners, etc and their well-being. 

If you have a partner and are a minority owner or LP in the deal, you may find something, but that doesnt sound to be the case from your description.

His "owner occupied" loan application is ok if he intended to live there when he applied.

Summary;  95% of all pre forclosure owners refuse to even talk about selling inspite of the empending auction. 

Account Closed a PMC has two options to get liability insurance (tenant slip & fall) protection:1) Get added to owner's policy as Additionally Insured (NOT named insured).2) Setup a master commercial policy and add every property they manage to it and then charge those owners the cost of the policy.Otherwise, a PMC CANNOT get liability coverage on a property they have no ownership interest in.So, nothing wrong with their request.

You either need to find a way to make and save more money or look into owner occupied investment strategies like a live in flip or house hack.

Do these messages disclose that you aren't speaking with the actual owner if you aren't? 

Many people on Sec 8 but also many market rate tenants/home owners.

I wish all the STR owners luck.