Non Performing Note Drawbacks

[Shanna Bechtel]

Hello Investors,

I'm new and looking into Note investing. I don't have much cash (like $500-$700 in the bank) but need to get started soon to help pay down debt. Most of my extra cash is being spent on debt. I found a note but really unsure about it, and I'd like experienced note investors' opinions on this. Also know I have about $5000-$7000 available on CC if absolutely needed.

NPN 1st position
DQ over 10 years with matching DQ taxes (found on county website)
Home Value $39,900 / Note $60,900 / Price $600
DQ Taxes $23,000 as of 2015

I seriously doubt a 10 year DQ note can made to perform again with the same homeowner. They've been living for free for 10 years! I also know that either the county is going to foreclose or someone has 1 or several tax liens on this property.

I figure my options could be this (if it even makes sense)

1. Foreclose and get a renter in there for $600/mo, initial investment recouped in 46 mos assuming $4000 to foreclose, $23,000 in taxes and $600 purchase price.

2. Foreclose, get taxes UTD then just sell for $35,000 - profit of approx $7400 (if it's even possible)

3. Foreclose, get taxes UTD then seller finance about $40,000 @ 7% for 15 years yields $360/mo with $5,000 down

Best case scenario, the current owner resumes payments around $600/mo after a refi and lump sum for arrears and those taxes! 

I welcome everyone's information on this. Deal, or no deal?