My question is, if they fail to follow through with this deal and the house goes to auction is legal action possible?

HI Darrell, You can certainly make offers sight unseen, however, it's a good idea as a newbie to go and see it for yourself as everyones opinion of a cosmetic rehab is different, however, if you already have buyers that purchase in that market and you know their price points for purchase, make the offer and then it can always be tweaked after inspection if necessary.Good Luck and remember to take massive action as that's how you learn! 

If the collection agency finds the particular debt to difficult or deems it unworthy of their efforts then you are just left there sitting without any action on your behalf.

Make them responsible for everyone's actions as much as possible.

You should reach out to them to see if you can get them to bring the account current, but don't delay eviction action for any reason OTHER than full payment being received.  

@Joe B.DON'T do it now you lose the "stepped up basis".And tax laws may change, so always run the proposed action by your CPA.

Recently I decided that I'm taking action!

., AC units stolen, pipes and wiring ripped out, window broken, door kicked in), significantly more challenging tenants, and neighbors whose actions reduce your property value (e.g., building code violations, drug activity, squatters, loud music, loitering, littering).

The best action would be get fully approved with condition on tbd property.

Not exactly stock market fluctuations, but even commercial properties are sensitive to market forces when translating how much that NOI is worth on the open market