They are now being illegally denied housing 

The reality is thieves are thieves they are every where but there is simply no denying in the tougher rougher areas they are rampant.. and vacant houses are simply fare game.. if its not the thieves its the kids breaking in and having fun destroying your house.. on the South side of Chicago they use a system called DAWGS google that bad boy.. only way to keep them out.. and the other thing they do there and in Detroit is any ground level windows are replaced with glass blocks.. 

Expect for there to be a lot of additional work involved in it - you basically have to block the top and bottom of every stud bay.

We wouldn’t be actively involved.

Does anyone have any advice or creative ways to finance a deal like this when there are so many risks involved and at a time when there is a lot of uncertainty in the marketplace? 

The HOA had tried unsuccessfully to get insurance to pay for repairs, but insurance has denied the claim.So my question is whether or not this is something that should have been disclosed legally, or whether it is simply a case of "buyer beware" and now it's my problem to deal with $$$$$$$$$$.Anyone have insight? 

I am also willing to be actively involved at first but the ultimate plan would be to have a good chuck of it be hands off and be active in deals I enjoy.

. :) home is worth 700k as is: so they offer $700k minus 6% bc there are no realtors involved... or minus $42k and each pays its own fees. 

The mortgagee has no involvement in the property, reports/collects no income nor pays any expenses.

But I wouldn't get involved in it.Good Luck