They could, certainly, with a big enough crash, but it's doubtful.

Doubts that are keeping me from pulling the trigger.

Even if there are significant fees and back payments owed, I doubt there is enough meat in this deal to profit.The low amount outstanding makes me think this may be a second position note.  

-I would love to net at least $500 a month if possible.I doubt rents will support a monthly net of $500 after expenses in a class A neighborhood....

Old Redford isn't a bad area, but it's not exactly great either, so doubtful it's worth putting a ton of money into it. 

Mistakes happen and consistent, owner diligence is the only real solution and no doubt, some PM software ledgers are horrible to understand and PM should be able to clearly explain every, single question regarding your statement(s) and on the day of your inquiry.

Though the rent amount is in line with the area, your tenant pool is more limited, and there's a lot more space to maintain and get damaged, so your returns likely won't be so great.If you find that it's difficult to rent, I thought @Corby Goade's idea of converting it to a duplex is a good one if the building and zoning will permit it; alternately, you could knock out a wall to combine a couple of bedrooms to make it a 5/3 or even a 4/3 (or use some creative marketing - it's 5BR + office/den/whatever) to help make it sound more in line with norms.Hopefully you'll find a family that will want to rent it for years and years - it'll no doubt get torn up, but we all run that risk with our properties.  

A wholesaler who trusts you as a buyer might actually tell you about a potential deal, before a contract is written, particularly if they have doubts about the deal's viability.  

In terms of recourse, unless you signed an engagement letter and explicit deadlines have been missed, I doubt you have much leverage.

I doubt there is much if anything to pursue.