Ask your agent, different states have different procedures. 

They needed to beef up their underwriting procedures, which they have done.  

The Feds are always in first posistionLooks like to me they can lien the property but consult a good lawyerGovernment Collection Procedures on Defaulted Student LoansThe Higher Education Technical Amendments of 1991 (HEA) eliminated all statutes of limitations for any collection action by a school, guaranty agency, or the United States under a federal loan program.

It is impossible for any one attorney to know the real estate laws and closing procedures (and potential pitfalls) of all 50 states, so always use an attorney that is an expert (not just familiar, but is an expert) in real estate in the state that you are working in.

What's the step by step procedure for doing so?

The assessment procedure begins with establishing land value.

Formula: After Repair Value (ARV) – cost of repairs x 70% = Maximum Purchase PriceExample: 100k ARV – 20k Repairs X 70% = 56k Maximum PriceFind out the procedure for bidding at auction, do you need all cash?

Again, I'm stuck....otherwise I think I have the procedure pretty much figured out, find the property, fill out an intent to purchase form and make an offer, if seller accepts, get it under contract and contact my buyers.

We do most of our transcations by escrow and with full title procedure.

If that's the correct procedure, then it's not working.