They don't own the mortgage and they get paid for 'servicing'.That's the root of the problem and why the top-levels don't seem to do anything about it.The other issue is man-power and corrections.

For example, differing state restrictions would not prevent someone living in a state other than where your parents live to pursue a strategy like this?

Does anyone know if this will prevent me from getting financing?

that way you have a few months to correct any credit score or DTI issues that may prevent you from buying. 

I need to stop hurting myself, start educating others, to prevent the public, especially children, from mistakes.

Picking-off houses one by one with non-disclosure agreements will not prevent the sale of a home being recorded on the county real property website or property tax site.

This might prevent you from doing something irrational since you could be emotional especially with the loss of your loved one.

This has resulted in a push to keep a small town feel and ultimately prevent overall growth in the city. 

Seller puts mortgage in the back of their mind and they prevent a foreclosure from going on their credit report.After seller agrees: You market deal Owner Finance/Assume the loan for $15k down for $65k purchase price. ($5k to catch up loan, $10k for your profit).Finally: Once you have both agreements, take the deal to the title company and explain to your closer what your doing.

Seems like that may be the root of your problem!