So each state has a different procedure.

First, it states that a person may not be deprived of property by the government without “due process of law,” or fair procedures.

I also hired a lawyer (although I practice law and have a real estate brokers license in California, I do not know Illinois specific law or real estate procedures) who oversaw the purchase, reviewed the contract and generally provided me with Illinois specific information.

It's crucial to establish clear internal policies and procedures and consistently enforce them every single time.

I’m sure the properties can be cooled to 68 or even cooler, but most of my properties and ac units are less than 20 years old.I think tenants are just less likely to push for more and more concessions or it break the lease when they know they are dealing with a professional company that has written procedures for how to break a lease and what it costs. 

So, you need to know the local laws and local procedures of the state you want to buy pre-foreclosures and auctions in.

By the way, the biggest problem for Landlords (local or out-of-state) is the inability to properly screen, followed by a lack of policies and procedures to handle problems quickly and professionally.

So @James McGovern your saying when is it good to deploy a discriminative procedure for applicant's? 

However, I struggle with terminology, real estate procedure, and how to run the numbers.  

The biggest takeaway that I found is that you need to start implementing policies and procedures into your business now to make these types of (unavoidable) situations easier to deal with in the future.