I'm analyzing a 1st position NPL to buy for which the current note holder has started foreclosure.

It would look like this:9% APR on $120,000 secured by a property currently assessed for $145,000. 12 month call, 6 months of payments held in escrow for note holder's security, 6 months payments available in bank. 

Apparently, the previous title holder (the one who lost it at the sale) can actually come back and sue for the property years later.

I learn something every day....I just googled the retiring title thing, and one of the requirememnts is the lien holder releasing their lien on the MH.

welcome @Jay Jackson , I reside here in SA and I'm more of flipper rather than buy and holder.  

But by saying "no wraps without the lien holders written consent" you're basically saying "no wraps" because written consent will never happen. 

The downside to this is that the investor would run the risk of losing any capital invested should any of the lien holders force foreclosure.If you could do a little more digging into the liens to see the priority of payment on these, you might get an experienced investor to take a shot by reducing the actual purchase price.

Repair to get to the $265k is about $40k.We felt our best strategy with the home was to put a 400 sq foot addition on the home plus a 2 car garage thus making it a 3.2.2 1500 sq foot home, which we believed would retail out $350k+I determined who the note holder was, and contacted them to let them know I was interested in purchasing the home and was in process of helping the daughter get the house through probate.

I know it's a major risk, but the county assures me they're primary lien holder and the only deed concern I would have to worry about is an IRS lien (the property doesn't have one).

And why it is done after.If the note holder finds out they can call the loan or require a commercial loan.