This may trigger a default. 

If your application/lease process obtains consent for reporting rent payments to a credit agency (ours does an part of the consent to pull the applicant's credit history) I would report the default on their credit file. 

If the seller defaults on the loan, exercise your option and buy him or her out.44) Find a Co-BorrowerEven credit-poor individuals can secure bank financing by finding a co-borrower with good credit.

I figure it must be one of the following scenarios:1)  She is just in denial.2)  They are in the process of curing all the defaults by paying up all that is owed themselves.3)  They are in the midst of short selling the home already and have already had an offer accepted by the bank.4)  All the information I have is just inaccurate (unlikely).Anyways, that is where I'm at.  

Here are the numbers I have as of now:Foreclosure default amount: $165KFORECLOSE ORIGINAL MORTGAGE AMOUNT: $270KARV: Comps show upwards of $220KRepair cost: $40KCity: Bakersfield, CaBased on these initial numbers how do I make this deal work as a flip?

Most that go at higher rates are higher risk properties that are more likely to default and may even be worth less than the taxes (especially those that go for close to the opening bid of 18%)

When I was offered a short term (few years) assignment in Hong Kong I became an investor by default as we decided to rent out our family home in a Memphis, TN suburb. 

They need to be able to go after you in case of default.

I was at the ending stages of the loan process with Wells Fargo and at the end they said they couldn't do it because the house was in a rural area and if I default on payment it would be harder for them to sell. 

If you fail to appear, a default judgment will most likely be awarded to the Landlord.