Todd, the panic is 100% caused by the media and while we should be cautious, we shouldn't stop our regular lives due to the risk that is being portrayed by the media.

They avoid being foreclosed on but the mortgage stays in their name so they are still at risk if you stop paying.

I feel like we’re due for a correction soon and I’m worried about being stuck with a $500k+ home when the music stops.

Stokes Jr if someone's financial situation takes a turn for the worse, they will stop paying on their investment property first vs primary residence.

Drop the price and stop the bleeding.

@Sydney Sherman, I would give them notice of the planned construction, offer to release them from their lease if they choose, and make strict start/stop times with the construction crew so the tenants know they can expect quiet times.Offering to release them from their lease negates the need to offer a discount. 

If I am giving advice, I always say stop trying to find a partner to fund you and save and learn and see what relationships you can make.

I would not worry about finding renters or let that stop you from buying a multi family. 

That could be you buying the home from the seller and the proceeds being used (at closing) to satisfy the debts or that could be negotiating a reduced payment to the debtors and "assuming" title in exchange for satisfying those debts.But . . . if you can't negotiate this with the seller, then the legal process of taking a home from someone is a foreclosure. 

Should they decide to stop mowing the lawn, you would start charging them the added rent.