If you're getting high single-digit % returns, you are either cash rich with no debt, or you've owned your property for a long, long time.  

Pay down that debt or other debts asap. 

This could either be through debt or equity or a partnership.

You need to figure out how to do that by, ideally, communicating with the debtor/tenant or possibly hiring an attorney or collections to do what they do.Regarding your mention of other costs/damages, what are they?

This means I CURRENTLY have 0 debt or loans being paid and a credit score of 750.

For example, I think we are late cycle, so I lean toward the safest part of capital stack which is debt (or debt free equity).

You only have problem if you can't cash flow the debt or sell the property at the bottom of the market.

However, I suspect the opposing attorney wouldn't have bothered to send you a violation of automatic stay (which the court takes very seriously and could cause a problem for the opposing attorney if he filed one incorrectly) so I'd be inclined to assume you owe the money to be paid back to the estate of the debtor.

Non-QM lenders are asset based while Conventional lenders are credit based.Non-QM lenders focused solely on the following criteria when green lighting your deal:1-The ability of the property to cash-flow in terms of covering its underlining debt; or its ability ti appraise with ARV that covers the debt if you are flipping. 2-The credit of the borrower (660 or higher, preferably above 700)3- Your liquidity (do you have 3-6 months of liquid assets) after you close on the property.

Your best bet is to either pay down most of your debt, or add a co-borrower who makes a good income and has good credit.If this is for an investment property that will have rental income, and the $1200 already includes your primary housing payment, you have more options.