Preferable under $130k.

I can live with a 70% LTV but would prefer a lender that can go up to 80% LTV.

We preferred houses with equity, so slightly older loans and houses. 

They prefer to bring it down slowly and see if anyone bites.

Yes, that's the preferred technique.

I would prefer art museum/fairmount area.

I can see both sides, but I'd like to hear from people who have tested this (preferably someone in Frederick County, or Maryland in general but all are welcome).Directly stating the sellers situation may irritate them or produce the question "How did you get this information?"

Is there any software, preferably free but I'll consider anything that can help me with this?

I generally prefer to do it this way because the fee can be passed on to the tenant and you can set it up to automatically apply late fees if the tenant is late.

Lenders sometimes get in on this game too, alas (especially if it's new construction and you took the bribe to use the builder's "preferred lender" - that's the whole point of the bribe to use that lender!).