Option 1: I will receive only the rehab, hiring a contractor and ask the buyer to pay the property direct to the ownerOption 2: I will receive full payment (property+rehab) and my company buys the property a resell it shortly to the buyer

All of the heirs will receive the property at a stepped up basis so she should be able to sell her share immediately with no tax consequences. 

I don’t see anything in my contract about who pays this tax nor have I received the settlement statement for closing next week so that’s a new concern of mine.

They will be receiving nothing during that whole foreclosure process. 

@Brian WheelerThere is a 99% chance this post gets removed, but my firm provides some free excel models that might be able to help you out.

I receive it back from the agent with his signature only - no broker signature.

I received 6 calls and closed 3 transactions. 

I = RVI have an excellent spreadsheet that you can use that will calculate all these numbers for you.

Account Closed Again, I'm not sure where are you receiving your "Facts" from...

The high bidder at the auction will receive a Deed from the Delinquent Tax Collector provided, however, that the taxpayer has not redeemed the property by paying the taxes (and other penalties) in full within one year of the sale.