So we showed them my mother in law's bank account where my wife was a joint holder.

Other lien holders don't always act with logic though.

The issue is always trips me up vis a vis wholesaling is branch between @Jamie Rost's step 6&7.

When my seller fell behind the mortgage holder told them she could be patient and to pay as they could.

The structure is still very good etc.. looked it up on the county assessors site and it listed asis 84000 have me the deed holder name and address.

only hope for the second holder is the owner continues to pay on first and the house starts to appreciate to cover her investment..

Anastasia,to answer your question: the IRA account holder is in charge of making investments.

If I go to the sheriff sale at the courthouse and bid $120K, does this go towards covering all of the liens in order of priority with the lowest priority lien-holder left taking the loss?

The QI takes title in a special entity called the Exchange Accommodating Title Holder. 

We are a long-term buy & holders, but never want to be in a position where we can't exit a property without needing to bring money to the table.