Curious if anyone has a recommendation for a real estate attorney in the Denver metro area that has experience with adverse possession laws and related disputes? 

The stigma of a flood is always tough to overcome as it will have to be disclosed. 

You definitely need to consider the liability, however, you can overcome that with insurance and taking the proper steps to follow the laws in your state around securing the pool.

you have to tell your buyer, likley illegal not to, but you dont want it blowing up an escrow...... but if the house didnt cause the murders... aka it was an angry spouse, could have happened anywhere, not because of neighbors or a local gang etc.... then price it attractively and people will overcome the ick factor.  

Lenders that sell their loans today are also taking part in what they call CMBS 2.0 (post 2007 underwriting criteria, where it is very common to see certain terms and conditions implemented for the additional security of the bondholders, and the increased risk of the Borrower (you)).The one thing that I see over and over – even with some of the biggest players in the market, is this: Investors spend a lot of time and attention on the due diligence of the property, economics affecting property performance, property management, repositioning, and on closing the loan - - and NOT AS MUCH ATTENTION IS USED TO PREPARE FOR THIS ENTRY INTO THE FINANCIAL MARKETS, (WHERE THEY WILL BE RESIDING FOR UP TO TEN YEARS) AND HOW IT CAN ADVERSELY AFFECT THEIR RETURNS.

Any advice on how to overcome this problem and get a loan would be greatly appreciated!

Then I hear news that Freddie will no longer allow lenders to contribute grants to reach the 3% down payment requirementI am looking for suggestions to overcome the down payment hurdle.  

If they have an objection overcome it and redirect them where you want them to go.

I'm hoping that some wisdom from the BP community will either help me overcome my fear and throw the number out or confirm my old negotiation voice.

If you are risk adverse real estate, (especially out of state) is not for you.