However, when the property is sold, the existing mortgage balance (meaning the full principal balance, plus any outstanding interest, penalties, and fees) would have to be paid off in order for you to receive free and clear title.

I don't know your market specifically, but I do know we have had a strong seller's market nationwide for some time now.

It won't be a nationwide crash like 2008/09. 

Also could look at title of the property to estimate approximate outstanding mortgage on it. https://www.uscourts.gov/court...

With these bills, Philadelphia is continuing to set a nationwide precedent in protecting the rights and dignity of renters.”Click here to read the full article from WHYY or Click here to find the bill 

There are now asset-based loans nationwide where you can get as low as 4.9% stated income for 5,7,10,15 and 30 years term.

And if I put that down as a down payment for 500K loan I’ll have an outstanding loan balance of 400K.

Personally, I search the business up on state records to find an agent/manager but this can become unreliable if the business is nationwide or large enough that the owner is not willing to look at deals and has a unsearchable employee to do it. 

Start the eviction process because you can loose you home with outstanding utility bill with interest.

Anyone doing 20% down on 2-4 unit properties would be outstanding right now but their 20% down product is just for SFH currently.