If we recieve clear title from the bank who the contract is with, will we have new ownership of the property or will the current owners with the sheriffs deed get to keep it?

The information I have recieved I believe is going to help me move forward.

I recieved the help I needed to sell or rent my homes and they got paid and turned my properties into a real life school project. 

The first thing that a retiring owner wants to know before they will consider financing it for you is do you have the capacity to manage the property and make the payments.If a property is fully depreciated and there is potential capital gains both the capital gains and depreciation recapture are only taxable when they are recieved.  

The quotes I've recieved in the last couple days are around 5-5.25%, is that the going rate for this product?

He will recieve 50% of the cash flow each month (after all expenses including CAPEX are deducted) - which will average out to $400/month.After the refi - he will recive 60% of the difference between the amount left owing on the mortgage and the new value.  

Hello, Ashley You should also include what interest you will give them on their money as well whether it be 8% or whatever you guys decide to agree on, where the money will be kept, how long you will be holding their money for whether it be a year or longer, what percentage of the after repair value will they lend on such as 65% or 70% those are just some things you can add as well so there is a clear understanding of what you will be doing with their money and how much return they could expect to recieve in the time that they will loan it too, but the attorney and account can help with the exact details hope this helps 

The relationship blew up and now he wants 4K (a 6K lien) in addition to what he has already recieved (6K) which is way out of line with what he did. 

Regardless, it's now an REO and you should recieve clean title, BUT make sure they indicate you're receiving warranty deed.No, you won't lose your deposit if you bid and lose.  

We don't know here if the OP is talking about recieving that Notice To Owner, or an actual Notice Of Lien, which is required to be delivered within 10 days After filing/recording the actual lien.