Do you just tell the tenant that you have a space they can live on the cheap, no credit check, no background check, LL can raise rent whenever he/she wants, and you need to leave with 30day notice?

My wife is a realtor so thinking we would drop the 3% commission from closing as a way of negotiating down the buy price since we need our mortgage payment on the new home to remain very close to what we are currently paying today (so that our life living costs remain within my salary/income so not depending on my Wife’s non W2 income Realtor income).

Then file the Court's judgment in the recorder's office to clear title.

If any of the renovations to your rental space in the house were done to make the property ready for a renter, then those costs are also capitalized, not deducted. 

@Mike Halim - If the owner does not know, the only way to find out would be to pull title and look for the SNDA (Subordinated Non Disturbance Agreement) that was recorded on title. 

Look through the items and decide what are non-starters for you.

The loan and title are currently in his name, and we signed a contract (non-notorized) to be 50-50 partners. 

As a result I do not have a judgment against her.

Designing waste coral in tight space.

I am thinking if these were owner occ though ( I mainly deal with non owner) and the new rules it could be tougher .so I would plan on paying them off.. and if they have not filed a default then you just learn the time lines in that state and you know worse case scenario when you need to pay them off.