I would say that regardless of what you decide, make sure you have a clearly delineated procedure that everyone is aware of and that you never deviate from, this is business after all.

My question is, would it be a messy procedure if we still went ahead with this house with a specific clause that the tittle be cleared and leins be taken off, otherwise we dont close on it.

Maybe you could warn tenant and set a clogged toilet procedure? 

@Michael Ealy seriously inspiration ... creative real estate at its finest, awesome sir.

It's a matter of understanding the law, building experience, and developing solid policies and procedures to minimize your risk and increase income.

If that approach does not work, I am not sure if I can pursue a normal foreclosure procedure with notifications to heirs or need to do something different. 

In addition, there's a buy out procedure where I have to provide 60 day's notice and pay a fee equivalent to one month's rent.

Mid term goal: nail down systems and procedures on the first and learn everything I can, refi and repeat after about a year from purchase.

Each state has a Division of Real Estate who oversees broker operations & requires broker's to adhere to incredibly strict accounting procedures, audits and care of all of this money that flows in & out of their hands that is that of the client's (you) or the tenant's.

It gets more complicated than that, but at the end of the day, complex processes can be turned into step by step procedures.