It's kind of like buying a car from a dealer where you pay monthly until the debt is repaid and then they send you the title for the car.

If you are trying to acquire the property, go pick it up at the auction.If you are trying to save the property for the gentleman, you'll need to pay off any debts and probably end up co-signing a loan or something.

I don't regret it one bit, despite being in debt for it. 

Make a lower offer subject to a reserve public auction, offer the seller a 10% hybrid (10% of anything you get over what you offered), make full disclosures, get right of possession (so you can clean the house up and show it to prospective buyers), build in an extension in the event you need more time and use banking days for settlement.

and then wouldn't an aggressive litigator go for the insurance settlement *AND* your personal property?

They are senior to their debt, so they can crush, make sur there are's any other secured interests on the property. worth the $100 or so for a prelim title report. 

So let’s move on.3 years later, we managed to sell that house for 1.3 million rupees, and use the profit to clear the debts, and make the down payment for a bigger house in a better neighbourhood for 2.7 million rupees.

I was enthusiastic when I read an article about debt relief act which has to do with Short Sale. 

Yes, you bought the asset with its debts.

My investing is limited to part time as I still have to work an 8-5 jobs since the income from my rental properties is not enough to support my family and the debt against them at this time.