They buyer then goes to get a loan from the bank, and in the course of due diligence the bank finds out that one of the sellers has a tax lien judgement against them for $320k ( the property is selling for $130k ).

Conventional loan How did you add value to the deal?

There arn't and lower interest rate FHA loans to assume on multifamily which would put you in todays higher market rates.

Best bet may be a cash-out refinance DSCR Loan - what is the current financing/equity situation on the property?

You can still get an FHA loan on those if you live in one unit as your primary.

That information paired with a goal or some factor you are optimizing for, will usually lead to an informed decision for your situation. 

thats what we call a cream puff loan  I assume they are putting 200k in cash down ??

Does it depend on the value of the loan, like a $500k deal vs a $1.5m?

The loan was at 4% so the cash flow was solid, the only issue is we have more money stuck in it than we would like.

How can I ensure that our payment method complies with the loan agreement terms and the bank’s requirements?