There would be a lease agreement, just no monthly rent payments.

Are all prom note payments current as of today?

Seller was behind on pay HOA payments and in risk for losing the property.

Down Payment: 20% of the purchase price, equal to $43,0003.

Doing this would allow me to cut my down payments in half. 

Quote from @Theresa Harris: For late payments, how late are they? 

There is 3-5% down payment options you can use.

Our instincts are to eventually rent it and use the income for payment assistance on a new home mortgage.

Without this workout, the down payment requirements, current levels of interest rates and cost of the transaction would not be incentivizing enough to for investment. 

Did you know before it happened, that new regulations were coming regarding condominiums that now makes a large number of people both regret buying and now not being able to afford the  payments on the "great deal" they bought a while back?