@Wayne BrooksThanks for the replay.Thats what i thought too .HOA lien can be settled by negotiation with HOA and paying off the amount after we come to an agreement .Since the seller is suing the Insurence company because the prospective ppty flooded and insurence didnot want to pay , ppty comes into the lawsuit game.I am guessing as long as a clear title is issued it shouldnot matter.

Do you recommend just forming an agency agreement than to wholesale?

There is just too much risk.You may want to consider finding a great contractor with experience do some kind of partnering agreement with them. 

@Ben BradleyThe real estate agent that you decide to work with hopefully closed on a good amount of properties where he used an attorney/closing company to help close the deal.I would reach out to the agent on what real estate attorney he likes when closing a deal.Be mindful that there are different types of attorneys that do different functions so you may need a reference for a couple of attorneysAttorneys who focus on evictionsAttorneys who focus on closingsAttorneys who focus on LLC Agreements / Loan Agreements

There's no formal partnership or payment structure, just a kind of deal by deal agreement we discuss.

I think you're stating that the commission is typically fixed in the listing agreement, regardless of the presence of 1 or 2 realtors.

The plan is to treat this as any other rental (Agreements, Depoist, Policies,  ETC) However, I feel like I am missing something. 

You will need to get an estoppel letter from the tenant and signed by the landlord  saying everything is correct in the lease including security deposits and anything that was a verbal agreement( discount on rent for mowing yard). 

I am not comfortable to proceed with this purchase so what is your advice to me to withdraw this purchase agreement and to get back my earnest money deposit from the Auction company?

"Assigning" a purchase agreement is not "Selling".