I think if anything is immoral,  it is restricting the supply of brokers.  

Because if so, you should be contacting the listing agent.You have a bigger issue, though, because the banks put deed restrictions on these properties.  

At this point, there are no Arms Length issues or restrictions.

If they did not, they need to show the reason why they bought as an intended owner occupant and the circumstances changed so they could not.The other quick fix to that is that HUD could VERY EASILY put a restriction on the site that you are only allowed to buy 1 house every 2 years as an owner occupant.

So, if a property is wholesaled to a local investor,  would I expect the investor to know about the redemption period & the restrictions during the redemption period?

I have also learned that the more you pay the more rules & restrictions and the more the neighbors mind your business for you, which is usually unwanted.

Now that restriction has been lifted, so you can mortgage yourself to the hilt, if you like. 

Many members of the Veterans Leadership committee are Veterans, or are family members of Veterans and/or disabled Veterans.REBSEA urges Nonprofit organizations that support our Veterans to join REBSEA as a NPO Member at no cost and work with their local REBSEA Members to direct donations to their organization at NO COST to them and with no restrictions.

Need to figure out zoning, setpacks, neighborhood plans if any, and specific city building restrictions.

The first issue to consider would be if the COA even allows it as most have rental restrictions and do not allow short term rentals.