From there we issue a letter of intent via a canned form and give the seller several options.

What are your intentions?

The main thing is to communicate with your family about your intentions.

It is mentioned that the intention is to purchase said note and hold on to it long term.  

The owner still has "intent to return" so I don't think there is a lien.

I get the intent of the requirement, I would comply but I wouldn't be terribly specific either.I would put it back on any regulator type or on any attorney that may use that information against me by putting in terms of underwriting guidelines published by Fannie Mae as currently in effect as well as Housing and Urban Development guidelines as applicable to the type of property.

Am I wrong to think that these are someone squatting the house with only half intention of buying?

Bill Gulley might want to comment, I'd get a letter of intent to enter into seller financing, use evergreen note serving out of WA state.

Wondering what others starting out have experienced with the Price/Rent ratio and local versus long distance decision.2nd wrinkle is long term intent is both buy and rehab and buy larger lot subdivide and build 2nd on divided lot. 

I bought my house with the intention of moving to something more favorable to my needs.