I have yet to hear of a circumstance where a lawsuit wasn't pursued just because they could immediately find the beneficial owner.   

There is a SFH my relative is selling at auction due to personal life circumstances.

There is a SFH my relative is selling at auction due to personal life circumstances.

In most cases the repairs will have to be complete prior to closing, but there are some circumstances where the lender will permit an escrow holdback to allow the repairs to be completed after closing.

Create a budget for yourself allocating costs such as utilities and maintenance so you are prepared when unforeseen costs appear. 

Given your circumstances and goals, hiring a property manager could be beneficial, especially since you won't be in the same city.

Investing in a city or state you haven't visited and and do not have extensive knowledge on can add unforeseen variables that make a deal not pencil or too much of a headache. 

Most lenders will have clauses that allow them to modify the terms, freeze, or even call or convert the line if certain events occur, to include ambiguous events like changes in personal financial circumstances.

That is a distinctly different set of circumstances from Texas tax sales that I'm somewhat familiar with.Which of the two scenarios is closer to the OP case?

The best way to deal with these things is to create policies you go by and will only bend under extreme circumstances (this is true for almost everything business, as The E-Myth discusses very well).