Feel free to cut losses.

If so, are there any tips on reducing loss if natural disasters happen on the property? 

As @Henry J. mentioned you should get a profit and loss statement from the current owner, take a look at any deferred maintenance, expenses and go from there.  

Well, then, you'll likely need to put more money in to make it ready for sale, in addition to the difference between what the house appraised for and what you purchased it for (assuming you could even sell it for appraised value), you'll need to add an extra 10% transaction fees to sell to your losses ... your down payment would be mostly if not all lost and you may even need to bring more cash to the closing table just to get out from under it.  

That is the opportunity value of cash.To look at in simpler terms if mortgage rates are at 4% and equity is valued at 10% then having equity in a property we see a investor loss of 6% per month.

Look up "Tort Law" intentionally causing a financial loss to another (ha, intentional or unintentional, doesn't matter!).

This will help avoid the loss of earnest money and might create some income. 

Why would you take a loss because of their poor behaviour.

She opted for the The Georgia "Works Deluxe" Package for about $330.The only complaint so far is that the content provider loss her progress for a few days due to some systems outage.  

What would you suggest is the best way to approach or "solicit" the owners while still being empathetic to their loss of family member?