Even if they are tapped out personally, as you say it's their busy season, they can probably point you in the right direction.

While the house might be a "Waldo" if prices correctly and listed with a competent broker it should sell for more than a direct sale to an investor.If you are looking out for your grandmother encourage her to sell with a great listing agent in the area.

Not directly in the city.

First deal to get my feet wet in REI but have quick question.In contract with a property that I expect will cash flow $70-150/month (10% vacancy, 10% PM, $100/mo comb. capex/RM); cash return of 7-13%, excluding what I'd pay myself to self-manage.2/1, rentable condition, listed at 52, offered 32, in contract at 41.5. 

Since you have a lot of broad questions, it sounds like you're looking for some direction.

and what about tresspassing laws. if someone tresspasses on your property how can you not forcibly remove them due to tresspassing and also self defense?

Yes, a lender will require at least three months of all financial statements (Bank Accounts, IRAs, other Investment Accounts, etc.), from all people that are involved in the Joint Venture.

How should I approach the owner directly before the property forecloses?

I learned so much self-managing a property.  

There are a lot of LLC on the list.church's, holdings co ,trusts, IRA, property management co, LLC, banks, Enterprises, equities, ect.What ones of the above would you mail to ?