Claiming an ownership right in a doomed property is kinda dumb.

Maybe if the claimant had a BK that could stop the REO but otherwise his claim will be wiped out by the REO.

See if Joe claims he has a bonafide interest in Jim’s house it means fuckall if the bank comes in and says “we get house because you not pay us” (done in the voice of the Amazons from Futurama) and wipe out any subordinate liens.
And the LP would most likely be subordinate.