The short answer is that it is bank-dependent.

This will correct over time as more get burned, but until then, spend responsibly. 2) Do not listen to any advice recommending that you enter into a THIRTY YEAR agreement with a bank where you pay them a monthly payment in exchange for primary residence shelter where the only way you can meet the obligations for such a contract over the lifetime of such contract is that you househack, renting out your bedrooms to likely...strangers...until you are dang near Medicare eligible.

Signed a month to month lease and took the lease and the first months rent to the bank.

Many dont do bank accounts and utilize non-traditional services within their own communities.

The debt amount for this mortgage is about $20-30 k from what I can find online I am willing to pay if needed but when I called the bank they  wont release any payoff amount if not the past owner. 

Regular properties are probably in a better position because people always need a place to stay, and if I'm not mistaken back during COVID if you had a tenant who couldn't work you could call your bank and pause the mortgage. 

Hey @Joshua Beach depending on how many of these you have already done, it may be worth looking into a line of credit through a bank.

I actually during the credit crisis when our PDX banks froze  ... contacted them about doing a subdivision A and D loan for me... sent docs down  but I got a pre qual letter to quick and what I thought was too easy... next step was the 10k for due diligence, being a lender myself it was just too easy...

At closing day, part of the full cash purchase amount in escrow (~700K) will pay the default amount (pending) they owe the bank, 20K will go to their own account to help them find the next rental place.

You're probably not breaking even, but if your subsidizing the property isn't breaking the bank, then holding onto it and waiting for interest rates to go down might be better.