You could tap the $400k of equity in your primary, but that's a slippery slope with the little financial discipline you appear to have and could quickly lead to bankruptcy.

This may not seem important now but I’ve had two partnerships turn sour and if we’d have had an exit strategy on either it would have saved tens of thousands of dollars on legal fees and court costs.

Generally, the court proceeding will dictate what is to be done with the property and who gets what.

Talked about the US Supreme court recent ruiling.

When they don't pay you evict them as a tenant rather than dealing with an ejectment which I guess can involved more nuanced arguments in court. 

Quote from @Dawn Roy: My response is not relevant to this transaction as it appears everything is going to work out with your lender. 

I am not at an attorney, but if your "tenant" stops paying, and you try to take them to court to evict them, you're not even the owner of the property.

I am still waiting for the Court to sign off on the sale ratification, before my foreclosure attorney can get the title transferred and recorded. 

If Don fails to pay, the bank will certainly go after me, it will at least ruin my credit and will likely take me to court.

So many "investors" bury themselves in complex, expensive situations to protect themselves from some unknown threat to their non-existent business.Figure out if you have any shooting skills (or even enjoy the game) before spending money on $600 Nikes or an indoor basketball court.