I grew up in a family where formal education was considered a requirement. 

Education doesn't need to be formal and it can be done in a variety of ways.

If the owners want to vacate and sell, you will most likely need a real estate agent to list the property.Before doing this, make sure you get some type of agreement from the seller that they will sell it to you.Even an option to purchase should work.But make sure you formalize this step, or another investor may step in and steal your deal.You will need to list the house because banks want the most money for the property, so they will require it to be on the market with active efforts to sell.You need to make sure you use an agent that has a good track record with short sales.That agent should have a team of individuals (paralegals, attorneys) that negotiate with the bank.The agent will get both sides of the deal, so they are more willing to take a quick cheap offer from you.But banks will still get appraisals or BPO’s.They won’t give it away, but a skilled listing agent should be able to present comps to the appraiser to substantiate your offer price.Good luck

A FORMAL loan Mod done 9-16-2020 (But NOT recorded until 6-9-2022) reduced their rate to 3.375% to be REAMORTIZED over 360 Months.Looks like HUD took back a SUBORDINATE 2nd lien in the amount of $101,500 dated 9-16-2020 (Recorded 6-9-2022 at the same time as the Loan MOD was formally recorded)BUT they fell behind AGAIN so then another Loan Mod was done on 4-14-22 (recorded 7-15-2022)  which reduced the Interest  Rate lower to 3.125% to be REAMORIZED again over 360 Months. 

I am forecasting the short term (<5 years) to be in line with inflation, but I expect in the long term San Diego appreciation will continue to be far better than inflation (it has for at least 70 years).Equity pay down, with the rates were they are and the cost of properties (>$1m) where you are looking, the equity pay down is substantial.My own belief is 5 years is border line now on renting versus owning.  

@Brandon Carlson that stretch between TX and OK border along Hwy 75 has been growing tremendously the last few years.

The loan was a formal agreement secured by my parent's property (meaning if I didn't pay back the money, the bank would have foreclosed on my parents).

It is a hot market all throughout the Grand Strand from the NC border (North Myrtle Beach) - all the way south to Pawleys Island.  

What formal credit background do the owners and employees have?

Education doesn't need to be formal; simply any thing you can do to get a baseline knowledge of real estate.