I would think it's for public records.  

This information is not public knowledge, which it should be.  

Until the notice of foreclosure is filed at least 21 days prior to the auction no public notice is needed

If we negotiate for $100,000 and I sell the property (usually by public auction) and it sell for $150,000----GREAT I made $50,000 big ones.

This is one of those things you need to watch out for, while it may not be applied to rentals  it would be good to take the advice to get a CPA and read the IRS business expenses  publication.   

It's a good thing for the public these contracts have come under various new regulations to curb the predatory types.Option contracts are under some new changes as well, not understanding these contracts can cause a taxation nightmare, mess over a seller and as you asked, the results can be harsh, especially on the operator who got a seller in a financial loss. 

Some of these folks are very high functioning (they use public transportation, have a job) but need some help.

I was told to look in my local recorder paper for notice of administration for the public estates of the deceased.

NED Recorded – the Notice of Election and Demand for Foreclosure is the first legal document recorded with the Clerk and Recorder’s office to put the world on public notice that the property is involved in a foreclosure action

This works well for all involved for about six months, at which time the mom falters on fulfilling her responsibilities for staying on the public service programs, they cut her funding and she doesn't pay rent.