There was excess proceeds and the court could not figure out what to do… I kid you not

What they do know is that their new owner came in with a bunch of promises and no action, and immediately hit them with a fat 17.64% rent increase.You're going to get pushback with your plan.

Blah, blah, blah, legal description, terms of the security agreement.If the buyer fails to pay the underlying mortgage the seller can take it back.When a seller sells subject to, they can advance that underlying obligation to be assumed as a secured interest, in a wrap with excess equity you would include the original amount and combine the second amount or secure the first and file the second.This was just brought to my attention.So, how do you do it?

I wouldn't buy a townhouse because of the HOA - there's excessive fees as well as potentially issues with renting.

The number of STR their went up dramatically, absorbing the excess demand from Pigeon Forge, then the inventory (which also boomed) absorbed the demand and the market corrected.Its not doomsday, but the speed at which Sevierville boomed up created an apparent collapse when it was really just regressing toward its mean.

Escrows assumed at settlement are accounted for and credited to the buyer, from then on, there is no escrow due the original seller, I know there is guru crap to the contrary, escrows are checked annually and fed law requires escrows to be returned if they become excessive to % allowed, that overage goes to the new buyer.

I'm currently at about 55% LTV, so I am very comfortable with that (during the last downturn, we used all excess cash-flow to pay off all secondary financing helping to achieve a low ltv and now greater cash flow).

Welcome to commercial REI (and excessive government actions)...you summed it up well! 

A couple options I would try:1. find out who is the current insurer and appoach them to write the new coverage.2. contact the excess/surplus lines for a policy.  

Hidden or Excessive Charges: Be cautious of any hidden charges or undisclosed fees that may be added to the loan.