I believe in my revenue numbers I accounted for the loss of rent of $7200 annually and based on the prior two years.

Why would they sell it to you at a loss, when they just have to wait for the auction ( if the process has already begun) to recover everything? 

It might make sense to put your money into real estate to eke out a small profit or sustain a small operating loss IF the property were likely to appreciate - but these midwest turn key houses will not appreciate.  

If so, nothing can be done without contacting the current note/mortgage holder, their loss mitigation dept.  

You could absolutely be right, Probates could be a loss cause here and that's why no one is doing them.

I am at a loss as they are extremely well funded & do not need the father 'financially', furthermore he cannot 'swing a hammer' & his advice on REI, rehab fundamentals etc is way off base (yet he proudly proclaims that he has a substantial investment in the Iraqi Dinar & advised all his kids to invest heavily into silver when it hit $50/ounce !!!)

She just doesn't want to because she doesn't think it's necessary.I have a Risk of Loss clause which allows for an option out if the property were to be damagedClause:RISK OF LOSS: If subject property is damaged prior to transfer of title, Buyer has the option of accepting any insurance proceeds with title to the property in “as is” condition or of canceling this contract and accepting the return of the deposit.so I didn't  necessarily see an issue with excluding it in an addendum, but I'm not 100% sure.Does anyone see this as being a issue the may come back to bite me?

I suppose I should just cut my losses and find another PM. 

They have no incentive to sell the property at a loss, most cases the bad debt was from another bank that went under and is insured to the full loan amount.

Like starting any small business, it requires capital, as well as the fact that you will likely operate at a loss for sometime before turning a profit.