If the first mortgage’s lien balance exceeds the proceeds from the eventual foreclosure sale, any subordinate liens would be wiped out.

Considering how crazy rent is here and how difficult it is to have a place to live, you should keep and leverage it.

I know gaining trust is a key factor in making them feel comfortable with their investment, but again it is more difficult for someone to feel comfortable with you when you have only met via video chat. 

The balance could be over 3- 5 years, let it be a small monthly payment $50. or so maybe 6 % interest and then balloon the balance due at the end of the term.'

The neighbor has always been difficult to so he won't help us out by calling Ocwen his mortgage company.

You'll have a difficult time finding an investor who went belly up while owning property in cash.  

And give them some incentive to do this, such as a break on their outstanding balance, lower payments, lower interest, reduce their arrearage or combination thereof.   

Most parts of REI are difficult at first, stay active and things will fall into place.

@John Warren I don't think i have ever witnessed balanced conditions either, maybe just cyclical nature of r.e. or something else, but the trend line for appreciation just keeps up with inflation outside of the big, multi year market swings

I expect to overpay given they are Turnkey, yet it is difficult to analyze the quality of a neighborhood from looking at Google Maps street view.