Right now my debt is sitting at around 154k (8k outstanding interest payments). 

They would have been responsible for issuing and recording the mortgage satisfaction after they received payment.

You'll want to talk to a local probate attorney to see how much time that could take.If the squatter is not making mortgage payments, you've got perhaps another month or two before the lender begins foreclosure proceedings.In your situation, I would approach the squatter to see inside the property to assess the condition.

I just had a bank tell me that per new Fannie guidelines, the minimum down payment on a 3-4 unit is 20-25%, even if it is bought as a primary residence.

They do, however, have up to 60 days to return a security deposit after a tenant moves out.If an eviction is necessary for nonpayment, landlords are required to send a seven-day written notice of the payment due.

You could arrange payments with them (eg $1K a month for the next year with interest).

Could you gift the down payment to your mother in law so she can buy it and then transfer title to you when your house is done?

If one moves out and you get half of the rent, reject the payment.

It's under Menu, right below Payments.

You typically get the monthly payments but also backed by portfolio and not one note.