Do this as a refi or purchase?

CA Property was owned by entity.
Had 3 liens on property when 1st lender filed foreclosure.
To stop the sale, entity filed Chapter 11.
While in C11, 3rd lien holder foreclosed (had agreement with borrower that he can tak property if certain terms are not met)
3rd lien holder who foreclosed, now working with 1st and 2nd lnedenr to assume the payments.
BK has been dismissed since property had been foreclosed upon.

3rd lienholder also agreed to allow the original owner to refinance to payoff 1st and 2nd and also the 3rd cos he does not want the house either---just his money out.

Questions: (now that original borrower has an approved loan with new private lender)

1) Does 3rd lienholder who foreclose, need to rescind the foreclosure to allow original owner to legally refi?
2) Can rescission be done concurrenty and then the new refi loan to go thru? (New lender does not require title seasoning).

OR....
3) Does current owner (that 3rd lienholder who foreclosed) need to DEED property back to original owner to do the refi? Can this be done concurrently if no title seasoning is required?

OR....
4) Can only do this as a purchase?

Anyone? any suggestions?

Thank you