Purchase would be from the R.M. but you would need to verify the owner is no longer in residence (both parties).I would expect all RM's to be underwater and thus never expect any margin left for FMV sale even it you obtained title.

There aren't many in town for sale and they are more like 150k and rent for 475 or so for 5 units.

But to answer your last question, when you close on the property, the title company handles all of the documents and recordings needed for the sale.

If your debt/income ratios aren't right for the bank your only choice becomes a sale to gain that access which may not be ideal in that market cycle.

It just went into foreclosure and when I called the bank to inquire about it, they said they have no information and to wait for the sheriff's sale.

I have found that Realtor Associations are great at writing sales contracts but allow for way too many gaps in their leasing documents.    

However, there is a one time option to rollover a portion and still leave it open.

That being said, there is no way many would rate this a "B" area neighborhood the way most investors use those terms unless they were trying to make a sale to an out of area investor.  

You can use cash on cash or IRR to figure out value to you but at the point of sale, sales comparables is the only thing that will matter.

There would be no assignment fees only profit between purchase costs and sales net proceeds.