Hey Marcus, not too sure about the tax-free part... I

In Michigan at least, that EMD won't be released unless both parties have signed agreeing to how it will be disbursed.

Always best to get 3rd party opinions on these matters too if you end up in court.  

However if it is under water the bank might bid up to the property value or less to entice third-party bidders as they generally do not want to own the property. yes if you win the bid with no lien surviving, then you should have clear title.

Chris in CA  and with a current RE Broker license you May bring in up to 10 parties to a fractionlized DT / mortgage / note WITHOUT any PPM reg A reg D. the broker uses the CA real estate agencies disclosures for these transactions over 10 and yes you need to then move to some sort of PPM Reg A B C D or what have you.. this is HML i started in back in the early 80s every loan we made was fractionlized. 

Don't get me wrong: Your agent should explain the terms and conditions and ensure you are comfortable with what you are signing, and they absolutely should make sure all parties understand the timelines, key dates, and deadlines. 

@Jade BryantAre both sets disgruntled or just the evicted party?

Hardest part is starting but you are on a good path.

I use 3rd party apps that have a better layout. 

I too am pretty good with the math, so that part I feel pretty good about.