Current research leads me to think that the right angle is inadequate protection of the collateral by the owner (no insurance, continued decline, no evidence of effort to preserve or improve the collateral).

As a stand alone strategy to preserve your wealth it lacks. 

If the property is higher end, I have seen as high as $10 PSF for top quality wood so that could be a consideration to preserve value upon exit.

That learning will be the same 10% usable and 90% fluff, but it will be a heck of a lot cheaper, preserving money to put into actual investments.  

I opened all of these accounts when I was doing Preservation work as a few of them required it for contracts and for the others I used who ever opened my account to get me further up the chain to inquire about preservation opportunities.

It seems like your contact is with the property preservation company who coincidentally has no desire in seeing you purchase the property because they then don't get paid. 

Of course cash preservation is a priority so I've decided to follow her suggestion.

I'm new in the real estate business, but I have a lot of experience dealing with REO property preservation and rehabs.

I have worked before with asset preservation they are great, I will highly recommend them.

You will be looking at not just the cost of a foreclosure attorney but property taxes, forced place insurance, servicing fees and property preservation at the least.