Continuing with the scenario, let's say the property gets damaged and the new owner has insurance and the insurance proceeds go to the new owner and not jointly to us.

Can you use all the proceeds for a new deal or are you buying a new place?

I know how to find all that information out, going to the courts, assessors office, register of deeds, pre foreclose list etc.... but the hardest part that I have encountered is getting the contact information of the owners or next of kin.

You actually can decide to reject a applicant for any reason you choose provided when challenged in court you can show the applicant you did pick was better qualified.

In order for the sale to occur and any title company to underwrite that sale with a title policy, the tax lien would need to be paid either A) prior to closing (doesn't matter who pays it) or B) will be paid at closing out of the Seller's proceeds.  

whether that will hold up in court if something tragic happens, I don't know, but at least I feel like I did my part in providing a safe home.

When things have to go to court you can take time off or just hand it over to a cheap attorney to file the UD and process them in court.Best of luck!

The way to avoid paying tax is with a 1031 exchange where you sell an appreciated property and use the proceeds to buy another or more than one new investment properties.  

I have taken the three day seminar for Rich Dad but didn't opt to proceed with the advance RE course. 

I'd like to sell it and roll the proceeds into another rental property which would go on mine and my wife's name.