It might be worth spending a couple hundred dollars on a collection attorney to make sure you're doing everything correctly.  

Im able to get that unrepresented buyer to bid against themselves, get them to waive contingencies that no one represented by their own agent would waive. 

I'm waiting for the market to correct, and considering building 4-plexes in the outskirt areas mentioned above.

Am I correct in saying the “PA” you mentioned is the purchase agreement?

@Mindy Jensen Yes all my information is filled out correctly.

If so, then I would have to calculate the value of the property based on its current numbers rather than comps, correct? 

Correction will come to that town, and when it does there will be stooooopid amounts of money to be made, again.

If I go to the sheriff sale at the courthouse and bid $120K, does this go towards covering all of the liens in order of priority with the lowest priority lien-holder left taking the loss?

Personally I would walk it with him, create the scope of what needs to be done and have him bid that verse expecting him to bid what you want.

"Real Estate Commission Rebate Program"Pre-arranged and in place for pre-approved borrower/buyer clientsGood Faith Bid for a Purchase Price of: $500,000Listing Pays: 3%= $15,000 / Rebate to Buyer: $12,000Rebate to be credited at closing as follows: Closing Cost                         $ 8,000Home Warranty                  $ 500Attorney Representation  $ 700 New Flooring$New Window Treatments$New Windows$New A/C System $New Appliances                   $2,800Hurricane Generator$ Other: $_______________________________                                    $ 12,000 Rebate TO BUYER