Take a look at crime plots such as Trulia's heat map, and you'll see the areas in red to avoid.

Its a major red flag to me when people cannot come up with the money needed to secure the property.  

While this post is about a year old, yes this is still in play as a buyer obtaining a loan will find it difficult with an assigned contract, it's a red flag that the lender is financing land and a contract, a cash buyer can purchase. 

I live in redding ca and any help would very much appreciated. 

Do not contact the bank/trustee unless you have a cash in hand buyer, new federal laws are in place and chances of messing up in front of some attorney/trustee may not work well, lots of "save you from foreclosure" schemes and red flags may wave at the trustee, so stick to the thinking of a cash offer.

Have you ever had needy tenants and looked back seeing where their may have been some red flags?

Do you mean with a local loan servicing company they won't need to charge points, etc. because they are not a large banking institution regulated by red tape?  

@Alex Brown  A house that big that rents for that low is a red flag for me.

The long awaited red tape....Does not sound like a big deal from the sound of it.

Your statement raises concerns about code violations and triggers 'red flags' for me.