But in California, the note holder sets the opening bid.

I have been hearing that lenders are loosening, and as foreclosure/short sale credit issues start coming off reports in the next couple of years, then buyers may start flooding the markets, pushing us buy/holders out. 

Have her take out a HELOC to subsidize initial living costs o moving and then sign the property into your name and have her register herself as the primary note holder.

It is something you already gave to someone else.It is possible that IF your student loan defaults and the holder of that loan obtains a judgement, that the judgement can be used to lien your property or garnish your wages.  

I have contacted family members of property but have been unable to locate the deed holder.

For me, as a buy and holder, 14 years so far, 30+ to go hopefully.  

I've just never had a voucher holder even ask about the rent level (and they have asked about the deposit, the utilities, the background check, etc).

Keith, did you mean to say LLC owned by your IRA (LLC can't manage IRA, you as account holder do that)?

In my state lien holders can take possession and occupy the property if it is unoccupied.

However I have been reading on the forums that there is difficulty working with the mortgage company if you are not listed as a party.In this scenario we did a title search and discovered that the State of Colorado is the is the holder of the deed of trust.