By not following their own rules they have let a fraudulent bid occur thus preventing a valid bidder from winning. 

For example a first mortgage where the UPB is 100k and the house is worth 200k will sell for more than a house where the UPB is 100k and the house is worth 50k, which of course is common sense.As far as borrowers go, I think there is a small correlation between equity and combativeness but it's more of a problem with 2nd mortgages than firsts.

(possibly in a combat zone with little to no means of contact) I'm closing on my first rental tomorrow and there s a possibility my unit may deploy some time next year.

If you are Combat Systems related, I have a very good source for CS (gov't and private) related employment in Florida. 

The property went under contract, but the buyer's closing attorney found title issues and could not close on it as their in house underwriter refused to insure the title - He pointed out that there was some potential fraudulent activity done on when a quick claims deed was filed by some previous owners around 10 years ago. 

They have been combative and difficult to deal with throughout their lease so it isn't surprising.  

The IRS has been very rigorous in their attack on such transfers due to the potentials for fraudulent treatment of gain.However there are a couple of options for you.1.

You could potentially combat this a bit if you have a lot of properties with the PM.

Pretty terrible situation and difficult for us to combat.

.- Filing a fraudulent contractor's lien for over $100k against the bank and me for supposed work done on the property- Forging papers to show he took title to the property this year after the foreclosure auction.- Advertising the property for rent on CL and trying to get thousands of dollars on the spot to secure it.