It just wouldn't work for us. we explained our reasoning to her and suggested that we would be willing to do a lease back at a significant discount for a few months so the current owners could be ready to go when they found their new house.

One guy I explained the process to told me "ok, now I'm a little less interested," I did thank him for his honesty though.I'm excited!

This is why advising that can be considered malpractice in many places.Feel free to give me a call and I'll take a couple minutes to explain your options. 

I made a video that explains this in detail and you can PM me if you want me to send you the liink to the video.

Tried that, he is a good friend of mine and explained how all of this could help them in the future but they are pretty focused in the now.

I hope I explained myself a little better.

There was a sheriff sale September of 2011, I started looking to buy another house last year and to my surprise, it does not matter when the house was foreclosed on, it mattered when the government paid back the lender (I think that is how it was explained to me anyway), so that date did not start until April of 2013. 

As it was explained to me, the system depends on gravity and if the rise to the shower is not sufficient, gravity does not have enough runway to get the job done.   

Does anyone know if we should be presenting ourselves as the Buyer/Tenant Buyer when pitching L/O's to Sellers or should we simply explain to them that we intend to find a TB for their property?

I doubt you'll get anyone to even HML (80/20 LTV) on a property that is selling its NOI that cheap unless it is explainable.