I owe no back taxes and I am currently up to date on my mortgage.

Definitely would be ideal for where I am at right now, the hard part is actually finding a private money lender!

I'd start by looking at where the money is going and how to increase your income and lower your spending. 

The state’s housing is also ranked as the fourth most affordable in the country.Alabama currently has the second-lowest average property tax rate in the country at 0.4%, which helps investors keep more of the money they earn.

It actually works out better when you enjoy the asset yourself as opposed to someone who just wants the money. 

STR can provide more cash (potentially), but its a high risk high reward strategy - if you invest in the furniture, staging, photos, and management or self manage, there is a lot of time and money invested.

So in 7 years they could easily still owe more than it’s worth.

As the owner of the property that is being severely mismanaged, do I have the ability to move the money directly to my bank through government action?

(I also had to come to CA for health reasons, so I am not sure if that is an exception)- If I use any of the above, can I use a portion of the money to pay off personal debt?

I don't believe Dominion is the only hard money group to do this but that's how they get borrowers like yourself through the door.