How these funds are managed is dictated by state law, so you will need to pull the laws and regulations related to surplus funds for whatever auction (deed of trust foreclosure, sheriff's sale, etc) the funds are related to.

Common sense should dictate that the law never intended to tie up properties for up six years as the rule and not as the exception.  

Here's some hopefully, helpful cut & paste info:------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

However looks like price point will dictate your area.

I haven't found a single deal there for ever. .. any wayxome is a nationstar company so does greenlight and they dictate the terms and conditions of the sale. if its required that you pre qualify with greenlight I suggest you do itif you want this house. keep in mind because they are sister companies under the same umbrella they usually tend to try and get these houses sold and fund as soon as possible. . so it might be a good idea to try and work with them..

It’s also likely useful to picture who your ideal tenant is…families, students, contract workers, etc. that’s also going to greatly dictate where you look.

Instead of actual supply and demand dictating prices, its in government's nature to intervene.  

If I could summarize what is most important (unsolicited advice here): (1) Do not put the rental on the market until it is 100% ready for move in (2)  Provide a list of written and minimum qualifications the applicant must meet  (3) require the tenant obtain renters insurance (4) execute a strong lease (5) have a list of trusted and licensed vendors (6)  get good landlord insurance and possibly umbrella insurance if needed (7)  be quick to take care of work orders (8) let the lease dictate your actions/responses......

They let the market dictate its value.

Sixty percent of them will negotiate; forty percent will just say “take it or leave it”, in which case you leave it.First you negotiate for the lower price (if the facts dictate it) and only then do you go down and do a property inspection.You go through the property, using the system I give you.