It depends on the closing procedures for your state.

Use good contracts and operate correctly in terms of your policies and procedures.

They will have more process and procedures compared to a private lender.

I would recommend going to the Sheriff's Office (or whoever puts on the auction in your area) and asking them exactly how it is done (ask all the questions you can think of and be sure you really understand the procedure).

I am not sure why I would have to go through an eviction procedure if he would move someone in.

See the Civil Rules of Procedure in Justice Court regarding evictions.

Is there a different procedure, different loan type?

The only collections you might choose to ignore are for medical procedures and maybe student loans.

The house needs a number of things done in order to make me happy and many of them cannot be done with a tenant living there.Is the eviction procedure the same for "I just want you out" as it is for "you haven't paid the rent"?

However, there is a set of rules/procedures/guidelines that you need to follow to be compliant with the new laws (SAFE Act & Dodd-Frank).