On your first question...I'd suggest asking that question of a real estate attorney. In my experience, the seller (the bank) pays the liens. Liens on the property filed after the closing could become your (the new buyer) responsibility. In my experience, the committment of the title insurance company comes into play in a situation such as this.
On your second question, Have you talked to your buyers' agent about the need for a 203K loan for the home you are thinking of buying? There are definitely certain items that could be cited by the appraiser that would not allow for FHA financing unless they were repaired/corrected usually by the seller prior to closing or unless there is the FHA 203K loan along with your FHA loan so that you could repair/correct the problems after closing. Depending on the condition of the home, you might want to ask your buyers' agent to include in your offer and amount of money to be paid by the seller for lender required repairs. - Fri Sep 25 2009, 13:34