If they are for sale, your agent submits an offer like any other. 

This is simply a standard sale on a time crunch depending on teh foreclosure status.

Using the conservative low sale price of $500K this would net me about $170K to use as a down payment on something much larger in a more up and coming area.

Every real estate agent I know (all over the country) is down on sales, things are selling much slower, and just not as much action as has been for the last few years.

We had been "househacking" or renting our old condos before that. 12 months ago, we paid cash for our current rental (because we couldn't get a loan as a result of a recent short sale). 

I acquired a property at a sheriff's sale, but the owner has a history of coming up with the money or selling her redemption rights during the redemption period.

No real need in doing it for a straight sale though.

No sales pitch or charging money allowed. 

My questions are how should I go about the purchase and sale of this home?

Should I have him add language to the promissory note that I am paid out first upon sale of the property?