I’m talking about the kind of property you’re going to buy within a month or less and the seller just flakes out at the last minute.

I kind of doubt it since Airbnb isn't that popular in these parts. 

That's kind of sad to hear.

What kind of property did you end up doing as your next step?

I would recommend for you to list it now and see what kind of leads you will get.

Like questions about Timber and Timber land always happy to discuss those or really any land kind of deals.

As others mentioned, you're going to have a very hard time getting a loan when you're currently in default on any kind of mortgage, HML or otherwise.

I'd much prefer to put $60K on a down payment and closing costs so I have $50K to fix it up.So a couple of questions: 1) Am I mistaken in thinking those kind of lower down payment products are out there for regular folks like us? 

These kinds of developments can be huge draws for both residents and investors.

just to be candid, unless you're using some kind of creative strategy... you need a really solid amount of cash including reserves.