A federally insured lender will not be selling a SFD to an individual  without marketing it and it being  listed, otherwise they won't meet the requirement of marketing exposure and opportunity of any deficiency judgement if the state allows that, especially selling for less than an appraised value.

The seller is lucky if he's getting a deficiency waiver, and will probably just move on.

Since these aren’t really deficiencies but more cosmetic this I assume wouldn’t normally covered in any inspection contingency so i don’t believe I will be able to back out if I make an offer and a contractor says it’s going to require more than I expected.I apologize is this is a really silly question as I’m not really familiar with the process.

Since these aren’t really deficiencies but more cosmetic this I assume wouldn’t normally covered in any inspection contingency so i don’t believe I will be able to back out if I make an offer and a contractor says it’s going to require more than I expected.I apologize is this is a really silly question as I’m not really familiar with the process.

Foreclosure Double security depositDismissed Bankruptcy Double security depositMore than 50% negative credit Double security deposit50/50 positive-negative credit 1 and 1/2 security depositGood credit / good rental history Single security depositGood credit / no rental history Double security depositNo credit / no rental history Double security deposit3 or more roommates Double security depositBroken lease 12th month rent prepay If Applicant(s) are deficient in two of the 6 areas above, approval MAY be granted with a larger security deposit and/or prepaid rent or a lease guarantor (except for automatic denial criteria as specified above).

This might not be relevant in Florida, however where I invest, a seller would need to disclose material deficiencies/weaknesses in the property (and those found during an inspection). 

I would contact some property managers and ask how it would be to manage this property, what the neighborhood is like, and what quality of tenant you will get at $400 a month (by far my biggest concern with this property) being an OOS investor is much harder when you have a realtor you are unsure of so I would try and work on this deficiency.

A few years ago, banks got in trouble for selling foreclosed properties that resulted in large deficiency balances. 

Any deficiencies I would pursue in small claims court, but we all know that is usually a waste of time.

If the properties don't sell for enough to cover, he will be personally responsible for the deficiency.