If a lien holder steps up to redeem after our purchase, how much would we be entitled to using the example below?

The reason there is a release shortly after that mtg is because a mtg is recorded immediately, but the release from prior mtg.s (which were paid off with the new mtg) don't get recorded for a couple of weeks since the mtg holder has to receive the pay off, execute a release, then mail it in to be recorded.The balance now remaining on that $251,000 mtg that is being foreclosed on depends on how long since they quit paying on it.

Scammers gather these unbid or failure to complete bids like if the winning bidder doesn't come up with the funds or the tax certificate holder that won doesn't want the property...These scammers gather these post auction lists and advertise them for sale like they own them or have permission to market them, they generate a buyer then go get the property real cheap then sell to an end buyer for near market for the condition of the property.

I'd never try to talk a flipper into a buy-and-holder, I'd never try to talk a HML into joining a syndication, I'd never try to tell someone who loves being a part of a large syndication to buy an SFR in Iowa, etc.  

Like to get perspective on how they are going to handle a market downturn  when you have so much of product in a given market  of similar type.How would these 1000+ apartment holders(active partners)  handle these projects  when the prices and rents  go down , interest rates go up and projects need new capital infusion to survive.

not sure this helps b/c you would need mortgage holder to be on board.

The current note holder was added as a party to the tax suit.  

They will accept or reject and they will also take care of the holder of the 3rd lien.  

I don't want to discourage you, but many times new investors think they are finding great deals but the numbers just don't work for rehabbers or even buy and holders. 

However, there is much varied opinion as to the degree to which banks/lien holders try to prevent this by exercising the due on sale clause of the loan and on how difficult it may be to find insurance.