It is a numbers game, and you need to play the numbers to win.

I have a question if I buy a home with a great discount why can't I owner financing then sell the mortgage provided I get a good discount on the home I understand that I may not get full price for the mortgage but if I sell at 70% of value and got home at 50% isn't it a win.

If I win this property, can the mortgage lender come after me to pay the mortgage cosndiering they are plaintiff for this foreclosure?

If the spread of the cash buyer to the financed buyer is small then usually the cash buyer wins.

Would any realtor/investor in the Austin area be willing to give me a second opinion if there is a way to make this scenario a win for both my clients and me?

I spent enough time in the corporate world to know that when you involve attorneys, the attorneys are the only ones who win.

It sounds like a lose-win situation.  

Of those that we do accept, we will win some and lose others when we bid (as other smart investors also have access to off-market deals).  

You may or may not win this, be gentle but firm with your position when explaining it.The tenant that occupies the basement could be twisted a couple of ways.  

If I win, we record a security deed and proceed as normal.