He'll give the legal description and then the common description and then announce the opening bid.

The easiest way is to list it and sell it as-is and ASAP before the bank starts adding penalties and legal proceedings.

What is my legal/ethical obligation to first people that signed lease but no deposit yet. 

They could do a conventional loan, a "subject to" which permits them to keep their loan and collect the spread on your monthly payments, or a lease option and keep their security of the existing loan and makes you to pay rent for a while and then sell it to you at a certain date in the future at a certain amount and part of your lease payment can go towards your price down the road. 

Now I am sure you are pulling permits , and since he is living there at the same time , there is the cert of occupancy thats only issued when done .  

Besides attending to the myriad of questions, requests, and issues with tenants and the property, a good PM will provide liability protection with legal knowledge, asset protection with a tight lease, and increased ROI with simply smart management. 

Lastly in some areas, Maryland for example, if a property owner redeems, they must reimburse your legal fees.

This house is outside city limits so no permits needed.

Also, if you can, get a second job or some kind of side hustle (legal of course, like cleaning common areas, cutting hair, cleaning homes, etc.) and use that money solely for paying of debt OR saving for a down-payment, making sure you put it in a high-yield savings account, so it can grow interest while it sits in there......no taking anything out of it. 

Do not rely on it for legal advice.