Homeowner in foreclosure ongoing lawsuits against mortgage holder

[Connie K.]

A homeowner has been in foreclosure for a couple years and has filed motions against the mortgage holder, its counsel and mortgage advisors asserting that they did not have legal authority to schedule a sale, that they failed to obtain proper, legal valid assignment of mortgage and power of sale, that the foreclosing party is in violation of Federal money laundering and wire fraud statutes, that there were violations in Truth in Lending, that he filed for bankruptcy, that he had a binding arbitration underway, etc. etc.  District court has dismissed his arguments and an auction is scheduled.  Can the mortgage holder sell it at auction at this point or does it have to wait until it's clear there is no other legal recourse for the homeowner? 

Also, there is a 6 month redemption period allowed in this state.  Would this be valid after the auction is complete?  Will the foreclosed owner still have a chance to redeem the house by paying  the mortgage holder after it is auctioned?  

I assume the successful bidder would have to legally evict the former homeowner in order to get him out.  I assume that homeowner would pursue a lawsuit against the successful bidder too?  Would he have any valid legal options at that point?

And lastly, who would be crazy enough to buy this house?  Sitting on its own merits, it's a nice house, not that old and in a good neighborhood.   

Thanks for your thoughts!