Did nayone tried to get these from State  holders.

You are a junior lien holder to them (Assuming you record your lien).

No, title companies don't 1099 "profit" they 1099 "net proceeds" to the title holders.  

Another is when it was a MERS "assignment" that is now being recorded in public so that the actual holder of the mortgage and note gets to recover the collateral or proceeds.

In a number of states those numbers are far lower than the de minimis cited in the you tube video, which brings up the fact that not everything required of real estate lending applies to the chattel lending common to manufactured homes, and visa versa.

I know calling the lien holder would be the 1st practical thing to do but I am trying to avoid contacting them and bringing too much attention to the deed transfer because of the potential Due-on-Sale clause, but the home will be sold by the time that process could be completed, so I'm not too worried.

Left overs go to the second lien holder ( if anything is left), then third lien holder ect. till the money is gone.

Even if you verify that the dad makes plenty of money, if they suddenly decide to pack up and go home without telling you, you likely won't be able to collect a judgement anyway.You can ask for things like:- Passport, Visa- Verification of their enrollment in the school- Local ID like DL- Pay stub from DadAnd do your own digging.That being said, a lot of my friends are either landlords to Chinese student renters or are themselves Chinese student renters and they seem to all be happy with the arrangement.  

Your tenant sounds shady, change the lock before some fantom key holder robs the apartment and you get sued. those people who tell you that there is good in everyone, havent met everyone yet

If you have to foreclose you would need the cash to pay off the first mortgage assuming the first mortgage holder bids which is a 99.9% certainty.