I am in a tough situation between these items and need some representation and muscle lol. 

The question is: Do I declare this a 506B?

You can get very high end things for 20% of retail price if you have the muscle and time.

@Josh Bakhshi it does seem like the city is flexing their muscles on me.

I'm thinking that perhaps the loan was sold and resold and resold again and somewhere along the line the paperwork got lost, or was declared invalid in court, so the bank couldn't prove they had the right to foreclose.

BTW: as a professional, what you should do is; declare a conflict of interest and tell your superiors you should not be involved in whatever is going to be done. 

But this time the city declared it un-permitted and the tenant is seeking relocation benefit.  

I believe I can acquire and rent out properties for a great income... had to declare bankruptcy... went over 6 months with no income due to the housing crash... our credit is in the 400's..."

The only way out of an REDC auction is if there are environmental hazards or it is declared condemned.

On an unrelated-ish topic, I'm still not clear why it's better to have achieved a certain positive income from the business before I declare the s-corp election.