I am wondering if there is reliable  and effective software on the market for finding privately owned distressed houses, before these properties have been subject to formal disclosure action and have become publicly accessible knowledge. 

Peter, I would never oppose a formal education, and if you plan to be in the business, this might open doors for you.However, along the way, I would devour every real estate book, podcast, and attend real estate seminars and conferences to learn the investment side of the business.I have a BA from the University of Michigan with a concentration in Marketing, and although I learned a great deal about business, my formal education didn't prepare me to run my own one day.I learned the investing side by doing the things I mentioned above - attending seminars, networking, and paying mentors/coaches - and oh yeah, jumping in and buying a property.I would also suggest you pick an asset class that excites you, before just buying a house to rent because "everyone else started here".

Is it even a formal lease?

If you have paid under the Land Contract for five years or more from the date of the first payment, or have paid toward the purchase price a total sum equal to or more than 20% of the contract price, the Seller may recover the property only by use of FORECLOSURE and judicial sale of the property.What Is a Foreclosure?

A formal education isn't required, though having a good foundation and understanding in finance, business law (contracts), building standards, etc. is good. 

So after the upset sale, and after the judicial sale.

Have any investors found a bank or credit union around Rhode Island who's willing to lend up to 75% LTV even though there's not a formal down payment?

I understand that using a Land Contract in Kentucky (a judicial foreclosure state) is not advantageous at all for the seller due to a legal determination from the late '70's...apparently:  a Land Contract is essentially equivalent to a mortgage instrument thereby giving the buyer "equitable interest" in the property once any payments are made.  

Good morning BP, In the early stages of putting together a formal partnership for a buy and hold purchase.

I've owned many investments but now moving toward a formal structure and business enterprise.