A title company searches for any liens before the property is transferred. Title insurance is bought to cover any title problems after the closing. It really doesn't matter what they owe on their mortgage. In a short sale, the seller must have the agreement of the bank to accept less money than is owed on the loan. The bank takes the loss and may ask the previous owner to sign a note for the difference. This does not affect the new buyer. In addition to liens, watch out for unfinished homes that may have large permit or inspection fees due. These can add up to several thousand dollars! In all the deals we have, all liens were paid before the property closed. Title companies or attorneys make every effort to make sure a clean title is transferred. So far, not one of our customers buying a short sale has complained about title issues, only about the long time it takes for the whole process to happen. If you want to be sure, hire your own attorney to do a lien search.

Roxanne Moore, Realtor
ReMax Anchor Realty
Port Charlotte/North Port, FL