The balance of the liens has no bearing on the price offered or accepted. A short sale (pre-foreclosure) is started upon the obtaining a contract of purchase and submitting a SS package to the Lender(s) for approval. The HUD-1 settelment statement included in the package will offer the junior liens holders and or other entities with monies owed eg HOA some money. The negotiations will determine what all parties will accept, once everyone are in agreement then the property can close and the Title Company offering Title Insurance will have to make sure no outstanding liens are on the property. YOU MUST NOT CLOSE IF THERE ARE LIENS NOT RELEASED.

Stacey,
Carla is correct. You need to have a title company or attorney run a title search to see how many liens there are and what is owed.

You cound end up with a can of worms if you don't.

Also utilize the services of a licensed Realtor to assist you with the process. We have all the contacts and connections to get the information for our customers.

All the best.

Craig Fialkowski GRI, CDPE
EXIT Realty
2101 Vista Parkway Suite 225
West Palm Beach FL 33411
561-827-1790

Hi Stacey,

Not necessarily. It is always best to have a real estate attorney review all documents prior to signing as well as searching the title for liens or unpaid assessments.

Best Regards,
Carla