Reaching out to the all-knowing BP community because I've been doing a lot of research and talking with various people in the local community here in Huntsville, AL and I am trying to commit on my first deal. I've bee...

Thoughts on how to proceed?

Do those scenarios before proceeding if you haven't. 

Ask a attorney to be sure so you don't have unusual delays, on best way to proceed. 

From there, proceed accordingly.Good Luck!

Most title companies will not insure quit claims in TexasOnce the property is purchased, you can either negotiate a move out(cash for keys) or proceed with an eviction. 

They rely on hobby landlords going on gut feelings and instinct.Take applications from every interested person, pre screen then proceed with screening the most likely best qualified.

Keep in mind hard money lending doesn't require a MLO endorsement, only consumer lending does.Just my opinion, if you have kids (I have 4) you'll have all these same issues times however many kids you have...you better be ready to stomach it. 

Without an eviction proceeding and the Sheriff on site to forcibly remove tenants and their property, you are stuck writing letters,asking them nicely, waiting, praying, hiring someone to help.Used to work for a company that had issues with squatters and in particular, a certain tenant who intentionally screwed the company by forcing us to file an eviction, and then proving we (or rather the attorneys) processed it wrong, and then causing us to start over...

We paid much more on what was owed on the second lien and the question is why the excess proceeds is not going toward paying the senior mortgage?