You have aggressively dropped down your student debt, I say continue the progress and pay it off for you can potentially buy a bigger home (4 fam) owner occupied once you are done.Or if you are comfortable with debt you can make a bigger return investing and that can help you pay down your debt. if you are I will get a owner occupied 2-4 family with a seller concession (depending how competitive your area is) for you won't have a high closing cost.

Your DTI, debt to income ratios, and having that savings account ready to go when the time is right!

She will need to be able to afford the property on her own or you could co sign to get loan if her debt to income it too high.

I would certainly reach out to a real estate attorney to see if you can get some legal counsel! 

@Chetan ChhedaNo, I do not agree that the girlfriend has any right to legally occupy that house if her name is not on the lease.

I have found out from court records that the mortgage company has been paid his debts back In August so I am thinking that it is too late to contact the heir and now it’s considered bank owned (Or is It?)

I downloaded some assignment contracts from online, but not sure if they are legal here in San Diego.

Seems like your debt service would really be cutting into your profits.

Like Account Closed said "banks are not in the business of calling a performing note due" their business is investing in debt and collecting interest, "velocity of money" etc.

There are still good deals out there..Average home prices dropped to ~70% of peak value.So if you keep your debt below 60% of current value, I think you're good.