Even without the mortgage or even a property, the Note still legally obligates the signer (Signers) to pay the debt.

One possibility is simply take possession of the property.

That means you are getting a loan that gets you an amount where you are getting "cash out" of the property in addition to what you have in debt. 

I  guess I treat those debts as serious or more serious than a bank loan.I feel like I am the more experienced person and I should treat them like I'd like to be treated. 

BUYER will waive the termite inspection and accept the DWELLING in “as is” condition.SELLER warrants there are no unpaid utility assessments or undisclosed debts or liens, recorded or unrecorded, secured by the DWELLING and property being purchased.SELLER shall remove all personal items, furniture, food or other items that are not part of the real estate within seven (7) days after acceptance of this offer.

If the deal was that tight to begin with then do not purchase a property.It's better to buy nothing at all than to have a property breakeven with bad debt keeping you down.You have to watch PM's because sometimes they will take a lower PM management fee but then get a referral fee each time from the contractor performing the repair that is in their network.

Here are the numbers on the property (we are looking to buy and hold)Purchase 70kArv 110000Rehab 15000My wife and I have great credit, cash reserves (40k), no debt, so I assume we would qualify for loans (currently waiting for my 2 year mark at my commissioned job).  

Usually I prefer vacant possession but we did buy a 5 plex last year with 2 vacancies that lingered for 3 years.

Most people like to see 2% but not possible in all markets.Based off of the $1400/mo rent, using the 50% rule $700 would go out in expenses such as taxes, insurance, vacancy, maintenance and repairs leaving the remainder for debt service and profit.That would mean $8400 NOI Est.  

My experience is to do whatever negotiation in court and have their response recorded ( if they are leaving by when they will give you possession etc)