And the connection from the walls (tilt up construction) to roof are deficient.

 $40k outstanding.Bank Bid: $43k ($2k deficiency)Value (according to Zillow): $260k, seems appropriate for area.1 bed/1 bath, 1100 sqft.I understand that Zillow's estimates are not totally reliable, but even if it's 10% high, you're looking at a pretty good margin.Am I about to watch this property get sold at an incredible discount?

I think most failures flow out of our own deficiencies so my advise would be to make an inventory of what it takes to be successful out of state and then compare that to what skills you have. 

There is no deficiency judgment on a reverse mortgage.Do you know the seller's actual mortgage balance?

The answer is most any market near colleges that have student housing deficiencies, I have several client that employ this strategy near UCF and are pretty successful.

Of course the seller’s credit gets trashed with or without a deficiency judgment.

Taking real time notes on deficiencies allows for clear understanding if the items make their way to a buyer repair addendum.

Or if you have credit deficiencies or alternative income you'd like to consider, then a Portfolio loan will give you reasonable rates with flexible underwriting.

They are investments properties so lender could go after any deficiency.  

I'm born with artistic gene deficiency, any advise from the experts on a magical formula to shine up a house?