My guess is that given it is in such a great location the owner is intending to demolish it and develop something new.  

I guess at this point it is a dream.

The broker claims she always said it was occupied by 1 unit each but I guess that was lost in translation.

You find them by attending PIA meetings and building relationships with property managers/mortgage brokers and accountants.I am guessing that you are American and you have moved to NZ.

I guess if we are talking about situations where one is not making some of their payments, or unable to - then wouldn't it follow that an owner should ensure they are making their payments on their 50% leveraged property as they have more to lose in having it taken?

I guess it depends on one's interpretation of a 'grey area', but I'm with @Michael Plaks on this one.

So the house itself is worth 40K at least from my guess.

I can see where a seller may balk if its your first one.. not everyone is successful raising money .I guess the closest I have come in selling a few of my MHP's  but those were bay area buyers who paid cash :)  and owned 50 plus parks.. and we were talking a few million not twenty.. 

I guess I am in more of the learning phase right now, but really eager and excited to find my first deal.I work in agriculture retail and got interested in real estate through the research I have been doing through the FIRE community.

You guessed right.