Recently, a contractor and I had to part ways essentially because he did not have the cash flow to make it to the end of the project and we could not work out terms that were agreeable to us both to get the project to the finish line.

It's more complicated if there are other liens on the property that also need to be negotiated.However, if a buyer is patient it might work out in the end.As far as deals go, most shortsales are not discounted enough for it to be a deal to a flipper.An owner/occupant might also find that the bank wants way too much considering the condition of the property. 

I currently work out of country and look forward to meeting and learning from you all. 

@Matthew Wright Sorry that happened but the reality is not all deals work out.

Did your deal work out with the lender?

It may cut in but at the same time it is amazing how nicely that sort of deal can work out.

Deals can still work out there, you just need to be more creative and dominating the knowledge of your competition.  

The good part is you have a plan, and it will all work out.  

Makes things a lot cleaner for taxes and also in case things don't work out in the future.

Alternatively, you may want to try and work out Owner Finance for the whole deal.