Sounds like you have a lot of due diligence to do before proceeding. 

Account Closed If there is a lien on the property, that should come directly off of the top of the proceeds.  

Thanks for the advice, will wait until a signed contract to proceed. 

Can they take the property, auction it, and keep the proceeds?

@Tyson Taylor An IRR calculation could take into account the initial purchase of the asset, the exit proceeds, and the cash flows you bank during the 5 years in between.

Proceed cautiously.

You will have an assignment agreement that specifies your "marketing/assignment fee" and that will be on the HUD settlement statement and you & the seller will be paid from the proceeds at closing

I am of the opinion that I might just get a warranty and proceed to close.

Once you know all these answers then you can make a judgement on how to proceed

The custodian of the Trust will instantly give you up as the owner in any legal proceeding, as they should and must.