Broker is the same thing as sales person, which is the same thing as what most people think a realtor is. 

Is there an impending foreclosure or tax sale sometime down the road?

No offense to any I'm just trying to get a good insight on how this will work as not all good deals have to come through wholesale or sheriffs sale.

and it's a short sale SMH so silly when a seller tries to squeeze more out of a short sale. 

This change will notify your mortgage company, which may trigger the due on sale clause as mentioned about.  

Any part of the sale price that exceeds the home's appraised worth must be paid upfront as a down payment at closing. 

no I don't I use Zillow and realtor.com which as you may or may not know really don't have all the properties that are out there for sale for some reason My wife and I enjoy driving in the countryside and anytime I see a sign on something I might be interested in I just called the agent it takes time but I'm pretty obsessed with it so it's all enjoyable to me

If so, what happens when a due on sales clause is initiated by the bank?

What was the cap rate and what is the projected cap rate at sale?

I'd base my offer around the property's income combined with my demanded rate of return, as well as the comparable sales in the area.