Now 20+ years later, dad is dead and my brother needed to use that driveway and the gentleman went out, tried stopping him and then blocked entrance onto my moms property from her own driveway claiming he owned it.

Either way, the numbers are a lot better than what this offer letter is offering.

You can increase your chance of getting an offer accepted with FHA 203k if you show the seller that you are paying more than other buyers, have your 203k Team in place (203k experienced Lender and Certified 203k Contractor), and write a cover letter explaining your reno goals for the property and list your 203k Team members for reference.

They have every ability to block the lot split and the sales, since your land is pledged as collateral to their loan.I am not a 1031 expert, but I believe the sales would not be eligible for 1031, since the entire intent of the deal is to flip at least part of the property.  

She recently lost a newborn baby and everything has been downhill since She has stopped communicating with me for over three weeks now, has missed her last rent payment, has let the house go completely to hell, and I just got a letter from the magistrate that I have a court hearing over the amount of trash in the backyard.I posted a 30 day notice on her door being that she is month to month.

You should be getting to know investors face-to-face or via Zoom and hearing about other properties they are buying or working on and then vetting their proof of funds and/or hard money letter.

Yes, I already have an authorization letter from the MUD.

Is there a letter template someone could recommend to get started?

(it's the price to pay when you're in a marketing/sales business) and this is why you should stick to inbound marketing;)I never heard of anyone really getting in trouble for wholesaling, a few received cease and desist letters but if you get your paperwork right there is very little chance of getting sanctioned. 

If no response, let an attorney write that letter on attorney's letterhead.