One way to be able to purchase at auction is if you have the cash for the initial purchase then turn around and take a loan out with private money on the property.

You will here it a million times on here and it's the truth...you will make your money upon the initial purchase.

Then atfer an initial inspection and rough construction budget coming up with an MAO.  

It sounds like our best bet here if the insurance company doesn't cover it is to get on a payment plan of sorts with a contractor. 

Currently, there isn't an option to initiate payments before the first.

@Donnie MartensI'll bet you're glad to be settled.

You will lose your initial earnest money/good faith payment, if there was one. 

My advice for your first flip with zero money would be to find a partner that can bet on you as a person rather than your skills as a flipper.

You'll find tons of info online - but like @Sunny Suh recommended, you're best bet is to speak with a lender and outline your particular situation.Here's a link to get your research started: http://portalapps.hud.gov/FHAFAQ/controllerServlet?

So, you need to initiate legal eviction proceedings.I don't know if you have your property in an LLC and are required to get a lawyer as @Michael Noto, surmised.