That is probably the best case scenario.Sure, you can probably pursue it and even win a judgment (if they confess to it). 

I shouldn't short-sell all credit repair companies simply because I had a bad experience.

Account Closed  most of the debate is whether your selling RE without a license and as you state getting a license solves those issues.I would also add to your list to simply check in with the state regulatory agency that over see's real estate brokerage activities  and see what the law actually says..

It is simply a means to diversify your IRA, not a way that you can personally access the funds for your own purposes.Do some reading here on BP and you will identify a few providers of both service types that participate here regularly.  

I feel that I am in a no win situation with this company.

If everyone wins, it's a deal!

Can I get in trouble for simply trying to work with the homeowner in this position?

Though the seller and I are working together to make a win-win we both are pressing for contracts that are done right (instead of on a napkin).

There is a different rule for mortgages signed after January 1, 2016 (I'll put that at the end, so it won't be a distraction here) The redemption price tag is the winning bid amount at the foreclosure auction, plus some additional charges.

What might be some ways I can protect myself so I don't pay a high price for simply investing at the wrong time?