Foreclosure would most likely lead to additional profits, not losses for investors.

@Rita Koroll,As for HOAs, you need to consider them as an additional operating expense just like property tax.

I second all of the advice from the other posts. in addition to all of that, I would say connect with me and add me to your buyers list! 

Subject-To is something I will offer in addition to short sale as a last resort. 

Additionally, if the deal falls through am I to be left with the legal fees?

This addition is designed as a completely separate unit however it can easily flow into the existing house, creating a 3/2 with minimal work if needed.

I won’t include them in the costs since they should increase the value.I will also be careful of property managers who mark-up maintenance costs in addition to their regular fees.

If you plan on buying additional homes with this person, I would just let her enjoy this easy sale because the next one might be much more difficult. 

In addition to above, the lack of core investment opportunities, and inadequate inventory for proper diversification are critical issues that the industry needs to solve.At the same time, I don't think all of them are going to end up in a ball of flames.

I simply add something like the following to Block 20 ("Additional Terms"):"Buyer reserves the right to finance a portion of the purchase price, but is not requesting a financing contingency".Obviously, if your financing falls through in this scenario, you are obligated to cough up the cash to close, or lose your deposit.