Not an issue since you are buying all cash but (back in the day) I used to see winning bidders fail to get financing on UI properties all the time.

Depending on your risk level you can simply use credit cards/401k as cash emergency reserves.Lastly, adjust reserves accordingly based on future expected CapEx needs

That is probably the best case scenario.Sure, you can probably pursue it and even win a judgment (if they confess to it). 

I decided to live at home after graduating this past December to pay off all "frivolous" debt, Ie credit cards and such from college.

I feel that I am in a no win situation with this company.

If everyone wins, it's a deal!

HOA debts are the wild card though, that a title search won't necessarily help with.

Though the seller and I are working together to make a win-win we both are pressing for contracts that are done right (instead of on a napkin).

There is a different rule for mortgages signed after January 1, 2016 (I'll put that at the end, so it won't be a distraction here) The redemption price tag is the winning bid amount at the foreclosure auction, plus some additional charges.

I don't recommend going the legal option without an attorney as you will not be able to win if the landlord hires one.