We were just contacted by our property manager that our tenant cannot pay rent and wants to be released from her lease and move out.

My question is if she and I sign a release to end the lease, but he doesn't sign it, can I take possession of the house when she moves out without evicting him? 

The county says all the mortgages have been "released," but they have given me misinformation before.

The cost of make-ready, plus vacancy, plus my time and effort to release are all to much to do 12 month leases. 

The property manager and owner cleared us to rent it and to re lease us and did some “inspections” but I know we did some serious damage to that house in NC.

@Alexander Mears The Ultimate Guide to House Hacking Denver (https://www.denverinvestmentrealestate.com/house-hacking-denver/) is being released as we speak and would be a great place for you to start to get a in depth understanding of our local market.

The lien just says, "Hey, someone who owns this house owes me money on it, so make sure I'm paid off before you release the house to be sold to the next person."  

Once rehab is done you’ll refi, he’ll release his deed for the back.

And if by some miracle it gets done, it doesn't celebrate.

After they receive the money and process the payoff, the mortgage company will then send a release of mortgage to the county recorder, to extinguish the mortgage/deed of trust.