You can certainly offer to accept a partial payment if you are absolutely convinced it is a temporary situation, but you should not allow them to use the deposit under any circumstance.

Safest bet would be to let your Lender/servicer know of the unforeseen circumstances that came up so it doesn't look "sneaky" in the rare and unlikely event they would look into it further.

@Mordechai Chaimovitz yes, @J Scott is pointing out the irs determination is based on facts and circumstances as I was told a while ago.  

I am not suggesting this does not completely exist, although the circumstances that push a HMLs to take a loss on their NPL loans rather than taking the property back in a FC action (especially in TX where FCs is a breeze in most cases), is far and few between.

Then you are also at the mercy of their front desk sometimes for guest reception which could be great, or horrible, depending on the resort.Anyway, I would just love to be able to narrow down my search (as we try and get closer to our first property) and get rid of some of my nagging doubts or confusion about which direction would be best to go.I would greatly appreciate any feedback and first hand experiences that anyone has with these types of circumstances!

That isn't the case except in one very specific circumstance which is where I think you're coming from.

I do believe that there are exceptions for real life circumstances, but in my unqualified opinion, being honest and proactive is the best course of action.

Looking to connect with people in my region in the industry, especially women.

Most often tenant-occupied properties are sold because the landlord is tired of the circumstances and wants to cut their losses. 

No matter what age, ethnicity, handicap, or circumstance we find ourselves in, REI is so versatile and able to provide freedom at any level for anybody.