This is not untrue, but it is limited in it's statement in the sense that in some cases, a warranty & guaranty may not be needed, so looking to the function of the transfer is important.  

The conservatorship/trustee says that the owner is not capable or soon will not be capable of making decisions, and he can present a purchase offer to the courts to sell the property. 3.

.- OR -2) Wait for the homeowner to miss one payment and foreclose on the property, thereby buying something for a deep discount if you don't mind going through the courts to eventually own the property.Has anyone seen this type of negotiation/deal with lenders?

Dan,I've bought several house in WA at Trustee Auction (auctions at the court house steps).  

I stopped by the local courthouse for info but they were very vague and I was under the impression evictions happen any day any time so It wasn't a day they recommended I sit in court on to talk to landlords.  

It's simply a function of supply and demand. 

If it goes to eviction court, perhaps a reasonable judge will see it that way as well.Best of luck.

I have been apart of bata testing on some of their add on features, and they have people call you and ask you as a property manager what functions do we need to add to make your job a lot easier.   

the penalty of violating the Ability to repay rule is 36 monthly payments, down payment, lawyers fees, and court costs. 

I am interested in investing into off-market pre-foreclosure homes I research at my counties clerk of courts.