You could use a company like Rent Recovery Service or AOA Debt Reporting Service to try and collect the debt. 

How can you have a 3100/m NOI , and 11,400/m IN debt ?

One of the many things I learned in that process was the Debt Coverage Ratio.

That debt is tied to you personally, thus impacts your consumer credit score and can make it more difficult to get additional mortgages in future. 

Debt snowballing the 2nd mortgage asap to get it paid off?  

That's just a way to eliminate 90% of the properties on your list.

If you are going to have debts attached to the property, you will want to make sure to watch out for any due on transfer clauses, or be ready to personally guarantee any loans taken out in the name of the entity.

They all have a general theme... spend less than what you make and pay down debts that are crippling you. 

Also, I understand the process as follows:1) purchase lien2) the township does the work to colllect the debt 3) once debt is paid, I get paid the interest (pro-rated)Is this correct? 

Next I would recommend figure out how you want to split that $250k among the different real estate options and strategies (equity versus debt, core versus core plus versus value-added versus opportunistic, residential versus commercial, mobile home parks, self storage, multifamily, hotels, office, etc.).