Save and pay down mortgage to 20% equity ($292,000).

To assist with the bank required down 3.5%, 5% down payment?

The old adage is that you "marry the property, but date the rate" meaning that you can refinance down the road to lower the rate if the opportunity arises.

Then shut it down to frame it up, put your roof on and close it up in a couple of weeks. 

And finally how do we even know if you really are an investor and if you really lost any money and how much.. there is another thread on BP where someone like you ( major bone to pic) started flaming the company because they could not pay their interest payment or get a redemption and it boiled down to that individual had a 5k investment total ..

I have enough to put 20-30% as a down payment with ~800 credit score.

If not this problem, there will be another one down the line.

Even if it wasn't cash I would put down 100% of the proceeds."

or throw some flagstones down add a fire pit and couple of chairs?

At the auction it gets bid down to 3-4%.