Jack,
Be very careful with owner financed - do have a Realtor hep you and a Title company closing. Read your paper work carefully. Many people that owner finance do so with contracts that allow them to foreclose with the drop of a hat. Many owner financed take a higher down payment. It may be a better idea to see if the credit can be repaired quickly.
That $8,000 tax credit ( if you have not owned in the past 3 years) should be enough incentive to pay off a few debts.
Margaret

Your best option is to contact a local realtor who can locate these properties for you through the MLS(at no cost to you) and also protect your interests.