I came across this "auction property"- 218 multi family listing.

Now, the property was going to go up for auction as short sale in a week or so but my father has postponed it to early November.How do I go about profiting from this favorable spread?

I would literally have an auction on site while they are all there.

My second attempt was me putting in an offer for another 4-unit property(in an OK area) but was rejected because "The banks decided to send the property to auction considering they have been receiving a lot of activity".

First house I bought at a State Dept. oral auction.

Do I have to get permission from the borrower to pay off their debt, or can I just do it by calling the bank and handing them a check.Also, it's been hard to find the exact amount of the 1st lien and the payoff (when junior lien is up for auction).

Specifically, my question is can they lower the reserve or remove it as the auction progresses or does the reserve stay the same for the whole auction?

In either case, someone wins the auction.

Pre foreclosure, short sale, at the auction, or REO.

They sell certificates, which is like liens, where you are essentially lending money to the county, for a certain rate, with repayment dependant upon reimbursement from a tax deed auction if not redeemed by the owner.The rates will generally be less than 5%, and you have the risk of loss, with the lower end properties.