We got a house for $10 dollars, and they can move on with their lives.Because we deal with true motivated sellers (by definition, "motivation" means that is is not necessarily about money) we can easily solve problems for true win win situations.

I would still think it would be worth a purchase and a win for both of us if I can get it.

If we did win the bid do the current owners have the right/ability to stay in the house?

I think your best bet is motion sensitive cameras and lights - and if you have a house across the street put them there too so you can get two angles. 

It's nearly impossible to sue someone for back rent and win.

30% down and still a 15-20% CoC is a win.

Current rates are in the 4's on a 30 year fixed, so not heinous and since you don't qualify for conventional financing, this is your next best bet. 

If the value of the dollar starts falling rapidly within a few short years to 50% compared to what it is now, the borrower wins big time since you still have the same nominal dollar value of the debt and monthly payment, but it’s now worth so much less in the inflated money.

Nine out of ten times, my offers are too low, and nine out of ten times I overpay when I do win, but I know what I want and I'm ready for the work it takes.Know what you want and you'll find it's not so hard to get.

Let the buyers beat each other up and the seller wins - every time.