In the event of default, you may be in a better position taking over the payments of a first from a seller financed second, check foreclosure rights in your state.

SO, I was thinking of paying the back payments and curing the default and doing a quitclaim deed so I become the owner and can this house on the MLS.  

Let's say you help pay off the default amount, then what?

At least it was a very difficult concept for me to grasp when I started lending in the Mid west in 2001 and 2200 loans later and a few hundred defaults learned that appraised value in the MId west and upper east had NO bearing on TRUE value

If tenant violates this Paragraph 9 or any agreement to keep a pet on the Property, Landlord may take all or any of the following action: 1 dog to be part of the lease (my highlight)  (1). declare Tenant to be in default of this lease and exercise Landlord's remedies under Paragraph 27;  (2).

The rest at some point into the payment plan default and the case is dismissed.

In other words, the banks are protected if you default similar to an FHA loan , but you don't pay a monthly mortgage insurance as you would with FHA.If you have the benefit, definitely use it for your primary residence.

If you are good at web marketing a website can generate leads, Tax default properties, burnt out landlords (think rent court), vacant houses, all are great ways to find deals. 

Now he has defaulted on a 1st lien mortgage of a condo he used to obtain cash to buy the bad investment.

I will carry risk if buyer defaults on payments.