I am wondering if anyone knows of any federal banks or lenders that are offering interest only or partly amortized loans. 

Get rid of the ball and chain of far too much government, and there will be dramatically more millionairess next door." 

I have a full time government job and support my wife and three children.

But you may qualify for income based repayment (IBR) on your school loans if they're federal loans which can also count towards loan forgiveness based on your professions.

Also a federal offense, if I am not mistaken.

I agree with Jerry, and the offer you got is a contingency contract, you need to tell others that you have a full price offer subject to financing.And, unless you did a great job on the rehab, don't hold your breath with any government loan, appraisers can get picky. 

Since that is federal law, I can actually talk in detail about that one for a change.

Jay, the reason you've probably not seen surplus property sales is once the claim is made the government becomes aware of the death and then the probate is opened and the search for heirs commences and more than likely a settlement is made for the heirs to release their claims.  

I will assume you are experienced in the mechanics of a real estate investment and focus on note specific issues.I feel the toughest parts of investing in discounted notes is finding good, professional sources and making sure the note complies with state and federal lending regulations.Be careful of discounted note investments being offered on Craig’s List or by “note brokers” that are certified through some school or program (ie guru).

I'm also not sure what you mean about having to "approve" him unless it's specifically written into your governing docs or you're a cooperative rather than a condo.