An issue that has plagued this whole situation is that when my parents got sick they were behind on their mortgage and the bank wanted to foreclose the home.

You'll get better deals if you can pay cash.Keep in mind that many banks won't let you refinance (even if you paid cash) until you've owned for 6-12 months. 

I have found a great deal that I want to purchase and need advise or examples of what people have used to approach the bank.

i need an agent that specializes on foreclosures/bank-owned properties. talk to me if you have done deals like this. thanks

The third party leasing companies are able to leverage economies of scale/ bulk buying power on equipment / vertical integration to drive costs down such that they can install solar cheaply enough that they will be making money on the system very quickly if not immediately (by selling the tax credits to banks/investors/tax equity funds and by selling energy back to the grid at a premium) .

I assume one of us needs to apply based on personal credit and income requirements.3) Going forward, how do we get bank financing without pulling our personal income/credit?

I know some great banks on the south shore I work with and have done business with on my investment purchases / refis. 

@Carole G.If the tenant is month-2-month and your jurisdiction allows for it, you can give one month's notice.  

You would use their money to purchase, and do the repairs as quickly as you reasonbly can, then go to your bank and get permanent financing (or get your whole mortgage as a HELOC if you can find a bank/credit union to give it to you that way).It'll cost you a few points to the hard money lender, and a 10-12% rate for the time you have it. 

Sandwich lease options seem to stick out to me because they require less money down on my end because I don't have to actually purchase the home with a bank loan.