If a bidder wants to auction a property, and nTrustent accepts the assignment, nTrustent will perform the due diligence on that property and list it for auction.

My developer partner has direct access to the several bank's Asset Managers & Specialist that deal directly with NPLs (Non Performing Loans/Assets).

The process of someone reviewing a legal document and providing tips and advice is the provision of legal services, and should only be performed by an attorney licensed to practice in your state.

The MLS price is not attracting any offers, so they go back to auction with a lower reserve price attempting to unload a stale, non-performing loan. 

What contingency does a wholesale use in their offerWhat happens if the wholesale does not re-sell or assign their contract, is the seller mad, disappointed, ready to file for specific performance law suit? 

They have no way of knowing how long it will take them to sell their home and be able to perform on your contract.  

However don't think they just "happen" and are reported like your primary residence exclusion.  1031 exchanges must be performed for you by a qualified intermediary and put in place prior to the sale of your old property.  

When you sell the home, most buyers perform inspections and so work has to be done right.

If you dont have any of the grey area types of income where the calculation is subject to loan officer skill and supporting documentation to tell a certain story then you'll be fine and your 48% DTI may be accurate. - you have 5% or less down so hopefully you're qualifying for a 1 unit or single family residence (SFR)/ condo because conventional in "general," cannot lend to 2-4 unit properties as a primary residence with that low of a down payment.

I am not sure if that is accurate, it doesn't make sense, if you buy the house, and approach the city to pull the permit in good faith, then you shouldn't be fined.