Even if it's with the previous honor.However, you can offer a 'cash for keys' approach but you cannot require it. 

Sometimes you just have to take the approach that “some will, some won’t, so what”.

I'm just curious if we are approaching this the right way.

It helped clarify how to approach the process and how to stay on the right side of the law:https://www.youtube.com/watch?

I work investments in Snohomish and King counties in Washington State and have been approached by a seller who wants to sell their property rights (easy enough). 

Most other sources take the "throw out the best you've got and see what sticks" approach.

I've not used your approach myself.

Developing that trust with someone you don't know may seem like a challenge, but if you approach it correctly, you should be able to achieve a pretty solid foundation of trust.The best way is to talk to others who have had an experience investing with the sponsor already.

Or what is best approach to getting approved for a mortgage when it comes to charge off's and collections?

Our team uses a conservative approach in our underwriting.