Worst case is that you make a total mess of it all, and learn from it for the next call which comes in.It's all about taking action Pete, and you're over the first hurdle where a lot of newbies fail to even get to the gate!

If that fails, one letter from a seasoned attorney should do the trick. 

In the event they fail to meet the standards outlined in the contract.

And if all else fails in your conflict resolution plan, put in a mediation / arbitration kicker if things really go afoul.

As an out of state investor myself, I can tell you at least 1/3 of my properties were bought from failed out of state investors.  

No, George, despite numerous promises to pay me a settlement amount, Andrew has continued to fail to follow through, and I am only one of several BP members to have similar experiences as I refer to in this thread https://www.biggerpockets.com/forums/522/topics/22... and in my three part blog.

If it was over 2 years this is considered a 'Failed Systerm' and would require a Septic Inspection.

C class properties if you look at historical data points really don't move in value much... the only way they go down in value is failed landlord syndrome and the house is trashed then it gets tied up by a wholesaler who sells to a rehabber who sells to a end user..

And the actual ball is what failed?  

If my guess is correct then you will end up being told your property has been "abated" because it failed during the latest inspection.1) is the contract still salvageable?