When they do that client's WIN. 

Remember in Life and Real Estate you can either "Win or you can Learn."

If you get a single or primary point of contact, call that a win and count yourself lucky. 

I am not finding a way for this to be a win-win transactions.

My question is IF the winning bid was for the $4600 (assuming nobody bid against you) doesn't the winning bid, wipe out the taxes, is this correct?

It's a win-win for everyone involved!

My verdict: it could be a winning play given your equity and potential upside, but carefully weigh the pros and cons.Crunch the numbers: Factor in all expenses, potential vacancy rates, management costs, and ensure the cash flow covers your mortgage and leaves you with enough buffer.Consider alternative Bay Area locations: Maybe there are suburbs with less pressure on prices but still good rental potential and appreciation prospects.Don't rule out the single-family option: If the numbers work and you value the lifestyle, don't discount it entirely.

A win for one person, is a total loss for another.

I'm not saying that's what you have to bid, but you want to submit winning bids, not just random bids. 

To do that, you'll typically need to serve them (check your state laws), which means you have to find them.Even if you win a judgment, you then have to figure out how to collect.