We are our own worst enemy.

Letting them keep the land is a huge mistake.  

The worst thing that can happen is purchasing a property through foreclosure auction just to find out you bought out the 2nd mortgage and still owe the 1st.  

I'm going to continue to try and find a lender that will take the air pressure test, so that I can make Hubzu pay the unpaid water bill so that the title is clear (I was able to confirm it is lien in the county recorder records).Worst case, if I can get it at the right price I might bite the bullet and pay to turn the water on after contract is executed just to make the financing and closing easier....

That is fine.I do believe you made one mistake though - don't take it personally: turnkey or not, you should have scheduled 1-2 days to fly out to the area.

Worst case scenario, they get pissed and don't even counter.

The places I own in now I definitely made some mistakes in getting to know what is good and bad in the market. 

It is the worst of times and the best of times.

This past brutal winter, the worst bill topped out a little over $650.

I promise you you're making a big mistake if you purchase the 5-plex mentioned above.