I would side strongly with your friends (I believe the technicality on OO isn't being there full time, it's like more than X amount of days for 1 year or something.) so I would say maybe not "move in" but make sure you have some stuff to stay there when you have vacancies.

You may want to consider having you added in a junior lien position with a set dollar amount that you both can agree on.  

I honestly told their counsel I would pile their claim amount in my front yard in bills and set it on fire before I would give them a penny.

Two totally different worlds and purchasing PROPERTY does NOT afford you any right to pull credit on a person(s) that you do not have a contractual relationship with.OP - Um...I wouldn't bid an amount equal to the first and second total debt if the foreclosing entity is the second lien holder.

This means you can raise their rents a reasonable amount and they will likely not move.

If you estimate the amount of that spending and divide it by 12, that is an easy amount to stay under market rent.  

All that matters is your re-fi amount.

They dropped off the check for the original amount because "they already wrote it out."

They are like injury attorneys and get paid a percentage of your claim so they fight for max amount. 

Heirs in her will might also have something to say about it.Also, your cost basis for possible sale down the road would be based on the lower purchase amount.