So a new lender will request the second lien (a) be paid off or (b) subordinate to the new loan causing it to fall into first position.  

However, he must give you 7 or 30 days notice in writing.

I've noticed a lot of the county owned liens have tax certificates that have been held over two years, up to 5-6 years in some cases.

I learned a term recently  Tenants at sufferanceUnder this term you can give a 3 day notice to quit, read more here: http://www.justanswer.com/real-estate-law/7plu6-i-m-california-property-squatters-not-tenants.html "...how much notice to be given to a tenant at sufferance?

(I sited the 24 hour notice rule even though my tenants had vacated.)  

I have bought occupied properties, and as long as you give enough notice, I haven't had a problem getting in.  

It doesn't seem like you're in a position to shop, so just something to keep in mind for future reference.Also, when you're talking about a 30-year fixed loan, if one lender tells you they can do something that several others said they cannot...it's a huge red flag.  

The situation is this: They have been in preforeclosure for 6 years he says and they finally got a notice that they must vacate in 6 months.

I am in your same position.

I feel that, with a background in art, carpentry, and style and design, I am in a perfect position to begin a career as a home flipper.