It is state specific, in some it is an ejection order, or writ of possession, in some it is eviction......either way, they have rights as they are occupants, whether they were tenants or previous owners.

Unknown what if any steps prior owner took regarding ejectment lawsuits.

If they are deceased its easier than occupied, as if you foreclose they could file bankruptcy, possibly chilling your intentions for up to 5 years, or request mediation when foreclosing to keep them in their home, as the idea when buying these is to try to help them in any way and not just be buying them to foreclose & eject for your BRRRR inventory.

You’ll likely have to do an eviction/ejectment proceeding or keys for cash.  

I suspect most taxpayers aren't savvy or informed enough to know to do this, unless I sought ejectment and they had their lawyer tell them.

Should I go ahead and file an ejectment lawsuit?

After I purchase the tax deed, I need to apply for a quiet title and after I receive the quiet title, I need to start the ejectment process.

Yet I wouldn't agree that having an option automatically means you have to bring an ejectment action.

First you need to eject the squatter.

Going forward we expect to continue to buy CFDs, but will do so only in jurisdictions where ejectment is closer to an eviction than a foreclosure.