Laws of agency are not simply at a state level, but federal and there are different agency relationships imputed by conduct as well as by appointment.

Make sure you understand what exactly the scope of the search is, if they check for just liens & judgement or do they also check the tax status, federal tax lien search etc..

Federal law applies to contacting anyone who has received notice of foreclosure, any ploy, transaction, deal, method that can be viewed as a means to take a borrower out of foreclosure, besides a conventional sale, can and very well may be determined a violation of federal law.

It is highly unlikely that any one L/O arrangement will be compliant in all 50 states and under federal requirements, have things reviewed by a local RE attorney. :) 

@Bill Zepeda  As long as you avoid the Federal Fair Housing Act - Protected Classes, financial screening criteria are up to you. 

So you couldn't buy from the owner for less than the amount owed without the bank signing off on a short sale.Also there might be some Federal laws at play since the owner is active duty military. 

There are federal and state laws applicable to utility providers and you certainly won't meet the regulations, landlords and developers (HOAs as well) have been nailed.Need to get separate meters to avoid the issue.Actual billings divided by sq ft has been acceptable in my area, your actual billing may lag to rents due.

Sure you don't get the ultra low federal reserve manipulated rates or terms of fannie mae paper but what you get in return from a good local banking relationship is well worth it.  

Limit the size of the federal government. 

Kurtis, If you do not your loan and want to report this company, report them to the Federal Trade Commission at the following link:https://www.ftc.gov/enforcement/criminal-liaison-u...The FTC’s civil enforcement actions shut down fraud and get restitution for consumers.You can also contact the Better Business Bureau and report them there as well, they will investigate the company and get back to you on their findings regarding the case.https://www.bbb.org/scamtracker/us/reportscamThis is a good place to start.Hope this helps.