They are both owned by semi-desperate = Motivated Sellers and I will get them at a discount because I can solve their problem and they can move on.

Look at the number of attempts at M&A in large scale asset management in the past 10 years--they try to merge to solve the PnL issues but mergers are hard to execute in this area.

Is it true that each and every thing on the following list typically need to be solved in order to qualify for a regular loan?

I'm not sure about this long term because it doesn't solve the potential issues with the sidewalks and foundation. 

You can solve for the principle and interest payments from there, which will lead you to what a loan balance can be. 

Many times you can solve this with them by doing an owner carry. 

After 5 years, nothing is solved, nothing has changed = they have been living for free in that property for 5 years. 

SBA has a bunch of morons that don't have a clue.

I HATE it when I see all the big guys in SEO and lead generation act the Guru when they have NO FRIGGIN CLUE what they are talking about!

Your best play at buying at auction and being smart about it is to:- Run your numbers excellently- Assume it's in rough condition, work off the exterior clues you can observe- Call the utility companies and get the past 12-24 month bills from the house (indicates systems functioning, etc)- See if you can get some "advanced info", like former zillow rental pics, old MLS photos, a neighbor that has the scoop, etc.There are some deals to be had, but it's a far cry from the "pennies on the dollar" world of pre-2015 auctions.