We're closely monitoring the impact of all of this on property taxes.  

Are there any other creative solutions?

I want to invest in out-of-state rentals, but because I have a full-time job already, I wouldn't be able to monitor the rentals.  

We didn't want to bid on it anyway...because we felt the margin was too thin...but so many similar scenarios existed with houses with enormous Judgements and Liens, yet never made it to Auction....Perhaps other investors were offering solutions to these owners that allowed them to save their properties through a loan or other arrangement??

@Vricia SanchezI love Bakersfield because the lower cost of homes compared to other parts of Southern CaliforniaThere's two problems right now, sellers have no equity and buyers of a hard time getting financingI coach lease-option assignments where you talk to the sellers and show them that when they sell with an agent, pay 10 to 15% of the value of the house to sell, when they add up all the costs: commissions, closing costs, seller concessions, Piti costs while selling, etcSometimes sellers have to pay to get rid of the house or they have no money to move forwardThe solution is lease to own where home owner enters into a lease option with you the real estate investor and then you sell your paperwork to the renter home buyer who was having a hard time getting a mortgage Real estate investor earns generally 3%, 3% of 200,000 is 6 grandPm me if I can helpBrian

One quick solution is to have the seller carry the 2nd if your loan officer is creative enough to structure that seller carried 2nd.FNMA has specific guidelines on what 2nd's are acceptable make sure you adhere to those guidelines. 

It will be hard at that monthly all in to get renters to cover that expense and for you to not have a financial burden.You're on the right track and keep looking into options, I just don't think this particular house is your solution (unless you get it for a steep discount.

It won't be enough to cover what you need to cover, if you have the problems you mentioned.I have mentioned the solutions to these problems in many other posts.  

Yes, we are in business to make money, but our primary goal is to offer solutions to that seller and if you are prepared to present them more than one possible solution, even if that means being more creative, you will be able to convert more leads, than if you are sifting and sorting thru motivated leads, looking only for those that have a clear titles.

Also, if a note holder stops getting paid, the typical solution is the company buys back the note and the worst case becomes the note holder misses a couple of months in interest.