Thanks @Aaron McGinnis I will certainly keep watching this property, to see if it returns to the market for resale.Question- What are the chances a house built in 1953 does not need plumbing or electrical replaced?

In either case, since the HELOC lender is recorded prior to the mtg being foreclosed the lender is neither a necessary nor proper party to the foreclosure since it has priority of record.In this kind of situation, where the third lender's money went to pay off the first lender's money I frequently used a theory called equitable subrogation to defeat the priority of the second lender. 

Id rather go 6 months with ZERO income and takes ME chances. 

You'll become very familiar with your market, have a chance to meet other investors, and build great connections.  

While it is very difficult to collect on a judgement in Texas, your sister has a good chance to collect someday as the property is most likely non-exempt

@Yusef Griffin PM me when you get a chance.

Just told me an hour ago via text and needless to say, very upset as I feel I have been strung along for the past month.Moving forward, are home prices going down/Did I miss my chance to refinance and pull cash out for next property? 

Also, have them put stoppers in sink drains, just to be safe.There's a chance they could be entering VIA the duct work/air returns as well. 

They want time for mortgage paydown so if tenant does not renew the option and goes dark then if lender has to take back chances are high they can be mad whole on the remaining mortgage balance.There are value add STNL plays at higher cap rates.

You could probably keep it under wraps for the time being and just keep paying, I don't see how you could totally rule out the chances of the bank calling the note due for the future.