Buying non-performing notes to purchase real estate

[John Havel]

Recently heard about buying mortgage notes and it got me thinking about potentially using this strategy in the future for acquiring real estate. Anything you can tell me about this especially in the case of non-performing notes would be extremely helpful in my education on the topic. 

The main thing I would like to know currently is how the process would work in the case that you buy a non-performing note and foreclose on the note. Lets say your goal in buying this note was to acquire the property at a discount for a buy and hold rental situation.

If you own the first lien but there are other liens on the asset and instead of selling the asset decide to keep it are you as the new owner now on the hook for the other liens or is the person who the liens were against on the hook? 

What if you are a second lien holder and foreclose how would that work if there still exists a first lien?  

Is it even possible or worth it to foreclose on the property in this case? 

What other pitfalls might there be to be aware of in this investment strategy?

Again any information would help immensely.

John Havel