As with any investment there are pro’s and con’s.. balance them out and make the right decision for yourself.

They have high LTVs on their balance sheet portfolio loans

The qualification was based off my personal balance sheet, not the LLCs.

There are numerous sources out there for small balance commercial loans.  

My bank will only provide a letter with an exact account balance.

Liquid 10% of loan balance after down payment.It varies just as much with the property as the buyer on what a lender will do.

Certainly it decreases demand but to go to a historically balanced market with our current supply would mean that we would hit record low sales. 

Trying to calculate accumulated interest on the outstanding rent balance is too much effort for what you will collect ...

I am quite sure a bank is going to want the players to have a lot of experience in the space... very good balance sheet.. and probably have the land paid for in cash.. as their skin in the game.. with those ingredients you can get this done. 

If I were you, I would float buying it off the owner before the foreclosure and see what happens.The key words in the OP's post was "Principle Balance".