You sign an agreement with them (workout agreement, loan modification, forbearance agreement) that spells out the details.

Now the best deal would be to work out a deal with the old investors to buy his interest thus strengthing the new investor's interest in the property, and likely to be able to file for quiet title.

I actually prefer partial to no equity as I've become proficient in the workouts so I like a reduce price tag. 

I was crushed, but learned a valuable lesson...don't sleep a property when the numbers work out.

@Kevin Phu 1k is exactly what my assumption has been when doing my analysis, but unfortunately, that wont be enough cash-flow for this deal to work out.

On average I spend 30% of my day sourcing deals (marketing), 30% analyzing deals (performing due diligence), 20% managing the acquisition process (closing and funding) and 20% portfolio management (servicing, collection, workouts, etc). 

Its still a workout, especially using them on a vertical surface like this. 

Initial numbers work out pretty well but I'm still learning how to calculate the different metrics and which I need to pay attention to for my system, which is still a work in progress.

I'd repeatedly say, Yes, I'm sorry it won't work out, but I already stated no cats. 

Thus, I only look to buy notes whereby I have a high confidence level I can help the borrower with a workout.