Something that will help you out a little more is to go and get a inspector to check out the house and tell you the worth now and the worth when it is restored, just make sure that you can repair and sell in under a year or you will be hit with a large intest rate. 

Maryland also charges stormwater fees and bay restoration fees along with our water and sewer, for example.Between water and municipal fees (if in fact just sewer charge) that gives you $938/unit on water.

I work in Emergency Restoration, so we drive around the city a lot, and the first piece of advice I got was stay away from I-26 south of the city.

You're playing with Fire and could potentially get burned badly.At this point the bank is almost irrelevant because they don't own the property,the seller does.You have to negotiate with the seller and make a written offer to be taken to the bank for approval.Not going to be easy with a short sale situation and the bank is already upset with the seller and now preparing to foreclose soon.The tenants are going to be the hardest part in this mess because they have just restored their tenants rights with the accepted rent whether it was the entire amount or not.I doubt the bank will stop the auction unless you offer much more cash than you should and no contingencies sight unseen.Expect the inside to be trashed and need a full gut job remodel and make your offer accordingly.You'll have to formally evict the tenants after taking possession

So when I sell it I could pay them the rest, or keep the note in place and use the cash to invest in another property.  

I'd be very happy to pay a fair price for it and spend the money needed to restore the home to good, whole living condition again.  

Working on a condo restoration project in Houston, Tx.  

In Memphis it requires city inspections and other time/expensive hoops to restore a property after a year.  

Our lease requires 60 day notice of move-out.Our lease requires the condition of the house be restored to move-in condition, minus normal wear and tear, before move out, to get full security deposit returned.We are updating our lease and was wondering if there is something legally defensible we could add...We are also able to start showing the property 60 days out.

I also let them know that the cost to restore the color is coming out of their security deposit if they don't paint it before vacating.They are M2M and I've increased their rent hoping that might encourage them to leave.