The transfer a home the title has to be clear. Any and all liens have to be cleared. The more complicated the more there is a need for an attorney to resolve the issue. Your niece is not being treated badly, however, just because the bank has taken less does not mean all other liens will also negotiate with her. The short sale is something that helps the bank and helps your niece. Child support is something totally differnt and why would they want to reduce their judgement? This issue your niece and attoreny need to work through is how and why this lien should be reduced. It always easier when the liens are associated with the property only!
First Weber Group
Certified Distressed Property Expert