The bank will likely want loan to value close to 80%.

If it's a larger bank it might take as long as 60 days.

Did you know....As of Jan 1st - the Gov't has forced on ALL lenders/banks in Canada - when approving a Borrower, they must pass a stress test at a Higher Int Rate (2% higher than approved) before getting the $$.

Seller is pushing to meet at bank and have Deed notarized, transfer funds same day and walking away. 

Like would a local bank meet with me and hear my sales pitch and consider backing/loaning to me? 

It's no less risky than a conventional bank....

If cash is readily available in your area, the rates be 3 to 4% higher than the banks.

I’m fairly new to RE, but it makes more sense to me that you’d keep using cash flow to pay the mortgage and start banking as much free cash as you can so that when the market cycles down, you can buy more properties :) if you are so inclined.

So, the bank assumedly "bought" the property at a "real" auction because (1) it wasn't happy wtih the bid amount, or (2) it wanted to pursue the owners for the negative equity, and needed the property to sell at the fair market value.That makes me think it is clear this is the primary lien. 

Most investors around dc are banking on high appreciation.