I also plan to request they add me as the Certificate Holder and Additional Insured on the policy, and provide me with the policy endorsement.

The title attorney thought the holders of those liens could enforce them against the prior owner's foreclosed property (very unlikely), so declined to issue title insurance. 

There is no guarantee against title defects or encumbrances that may have been present when the grantor received the property, nor does it obligate the grantor to do anything further once the title is transferred.Special warranty deeds are frequently used by temporary holders of real estate, such as trusts, or other fiduciaries, or corporations, who do not use or occupy the land for their own benefit.

Since I'm brand new to this, how did you convince your friends and/or family members to finance 100% of the deal in exchange for half of the equity and cashflow (for those buy and holders)?

A few tips and/or things to watch out for:- The general cost for buying out a book of contracts (not a whole business) is ~1 year management fees- Add to the above the cost for any systems/processes/staff/equipment etc...that come with it- One of the biggest challenges is how long clients are going to stay and what are the penalties due you (as the new contract holder) should they leave. 

I have always been a buy and holder. 

League City is known to be the safest city with more CHL holders than anywhere else.

Can another lien holder like the mortgage company come in after the purchase, pay you off and take it back?

We don't do real estate directly, but as holders of real estate notes, we do get REO there periodically.

In tracing the court records and speaking with the Auctioneer, the specific property was auctioned July 2 but has not been ratified, I've got the previous title holder seeing if he can intervene (ie, if I can outbid the investor who now has the home listed... since sale hasn't been ratified but will be soon), but I think it's gone.