If the bank got the house appraised and it wasn't a rehab loan or something just a standard loan.

My advice: keep it in the bank right now and get more financial education. 

At least not in a professional capacity, without consequence and substantial risk of liability.You can disagree all you want but that is how most businesses operate, banks, insurance companies, retailers will all listen to customers, make execptions as gestures of goodwill and they know more about running a business than you do.

The financing will depend on the bank and what type of loan they are making.

All of this was well over the property's market value at any given time in history.Then everything was refinanced into one $3.2 million loan by a small local bank, which the owner promptly defaulted on.

I think if you finally have the option (read: bank account balance) to put more cash down and “buy your way” to break-even or a small cash-flow then it’s okay.

I would recommend Marquette Bank.

Had the money for down payment and repairs but with lack of credit history I couldn’t get approved by the bank so I had to get creative.

If the Seller agrees to reduce the price to $210k, this will be a short sale and the bank may have a say or two about it. 

I gave the bank $2k as collateral, and got 2 lines of credit for a year.