I don't know if it makes sense to incur more debt or work on being debt free and try to establish a better credit score. 

The core legal principle to know is that the delinquent tax debtor has the right to live on the property until your tax lien matures.  

The debtor ( as they call him in the process) has to list all debts he owes and all assets he owns.

In the case of a Self Directed IRA you do need to have a custodian.I agree with some of the previous posts that investing in either real estate debt or equity is the easiest way to invest your money.  

If the debtor hired an attorney, the judge might allow things to proceed normally.

I have personally bought and sold 25 buildings in New York City and closed more than 300 real estate transactions as a broker.At the present, as a personal direct principal buyer I am in the market to add to my personal multifamily and triple net lease retail portfolio of commercial real estate investment property in Manhattan, New York City and Florida.In addition, I wish to use my entrepreneurial creative skill set, extensive real estate experience and track record to serve investors in their commercial real estate acquisitions.One of my biggest strength is the commercial mortgage financing expertise, including lowest rate first mortgage debt, plus for undervalued or highly profitable properties structured financing, including mezzanine debt or participating joint venture equity up to combined 100% LTV loan to value.

Perhaps you do not qualify for a legitimate reason, too much debt or low credit requires due diligence on maintaining a good credit.  

His original debtor passed away and a family member is the personal representative.The auction is being handled by an established local auction house.The creditor has told us the personal rep can not cure the default which is about 45% of the market value as is.

You might make a little money by notifying the Debtor that you intend to challenge the appraisal or the percentage of your payoff and get a tiny bit more from them so they avoid the cost and delay of litigating it.

These notes are assignable by the seller/lender, so a note investor is one who would purchase the note (usually at a discount) from the seller/lender in order to receive payments from the buyer/borrower/debtor.