They followed the procedure as they knew it to be (if I am wrong on that, it changes my answer).  

The suit to quiet title is a legal procedure to legally make you the owner of the property.

I would check the title report before moving much further.Also you should get pretty familiar with the tax foreclosure rules and procedures in whatever municipality or county the property is in. 

(Repair Procedure, Due Diligence, or "As-is")4) Did the agent tell you how he/she was protecting your Earnest Money / making sure you're protected?

There wil be some procedure in place for disposing of it.

However, studying real estate is a great way to learn terms and procedures as an agent but you must take a two track approach.

I would be willing to at least sit and talk to you regarding this to help you understand the procedures. 

I like the idea of pitching a friendly foreclosure as it would be necessary when junior liens are present and you need the procedure to clean up the title.

While under contract I know there isn't much we can do with actual improvements to the property so I am curious about what procedures experienced investors follow now to maximize productivity and minimize cost?

If and when she is a single day late on rent prior to move out, then start procedure for eviction.