I haven't had a problem with them getting out there, but it's the release of funds for work done, as you mentioned.

It's not as if they would release you after you started.

HIPPA has absolutely no bearing whatsoever as the only person whose HIPPA rights could be violated would be yours and if you request it to be given that’s the same as signing a release of information.

Is it odd that the seller isn't bugging the title company to get the title all clear so that they can release the remainder/leftover money that they held to them since they are still waiting on that money from the sale?

They just need to indicate it is pending contract release 

From there, obtain payoffs on all liens and make sure your offer will cover closing costs and all lien holders will be paid in full.If your offer less closing costs will not net a full payoff to the lender(s) and lien holder(s) then you are falling into short sale territory which is going to require you to obtain approval from the lien holders to release their lien and settle on the debt without obtaining a full payoff.Both can be completed, but it depends on the specific situation and the status of the upcoming auction.

If served a proper subpoena for the document, it can be released.

There are a lot of people like @Paul Sandhu mentioned, making calls to owners and agents to lease and re-lease or sublease these properties, and there are management companies as well that can assist with furnishing, eys and turning it over for cleaning between stays. but again I think that owning the building, make this model more obtainable and profitable. 

Prior to the auction, in a regular sale, the seller would have to get a release from the fed lien in order to give clear title.

I would want rent really low on the value so if I had to release I could get aggressive to fill it fast and then ramp up rent from there.What purchase price is this?