In that six month period what if he got sued and judgment was rendered or a tax lien was placed on the property or he went bankrupt,  what if he defaults on the mortgage??

There is always the scenario that if she defaults the lender can still go after me correct?

If you default on the payments for your $40,000 house and use the HELOC for the full purchase you lose your primary residence.

Is there a way to purchase a lien and find out how long it will be before it is considered that the owner defaults and I assume ownership of the note?

Originally posted by @William Baumann:Most likely yes, the seller is usually under contract with the realtor.Ok thanks for the insight William, so basically at that point I could just declare that lead as a default lead???

@Peter Grosso   many times in the small print of the senior mortgage with be a clause that does not allow any junior loans and that is an event of default.  

I will lose money before I default with them.

Conditions of a lease may include a requirement to pay current billings.I suggest that you hand the tenant the utility bill and have them pay it, if they don't then the bill is on you to pay, if that becomes a default of your lease agreement you can follow up as you may.

So, if I ever begin to experience any divided loyalties, I always default to her. 

If you get through to someone from the estate, chances are they are not going to sell it to you for the default amount but something between that and Fair Market Value.