The lawsuit includes claims for breach of contract, specific performance, and trespass to try title, and the case is registered in public records.Additionally, the lender has initiated foreclosure proceedings on the property due to Seller Z's default on payments.Is there any action I should take as Buyer A?

Better than an amateur evaluating a place and guessing what's wrong, not likely to miss something big after training, but really not qualified to tell you if X property is likely to make steady money as a rental after you fix what's obviously wrong or Y property is just going to be a total money pit.It's not like you and the roofing inspector/public adjustor space, where you go toe-to-toe against the insurance companies for real money.

These neighborhoods are often up-and-coming areas with features like public transportation, entertainment areas, shopping, restaurants, low property taxes, and great schools.

I have seen the performance record page got updated with all their defaults and recovery which was not made public before.

I promise that I, at least, will hear you out.CAVEAT: There are a lot of things established investors try not to say on public forums.

Your agent can market this in the public remarks so buyers see this.  

But that market has gotten so much hype and publicity as a great BRRRR city that it's dry right now and I am actively setting up market number 2 but I get to take with me the lessons I learned building market 1.It's trial and error, it's trust but verify, it's motivating the game pieces in the market: the agents, the GCs, the wholesalers. 

You're not going to arrange a typical "public auction", a bit delusional. 

Read the IRS Publication 523 for Sale of a Residence.

They also referred me to a public adjuster at the same time.