creditors: Do Liens Stay With The House After A Short Sale? - 04/03/11 07:17 AM
Does the buyer get stuck with the seller's debts and liens after buying a short sale?  The short answer is; No. The mortgages, liens and judgements do not stay with house.
Buyers and sometimes their Realtors get concerned that a house in foreclosure may have debts attached to it that will survive the closing of the short sale. Buyers are concerned that they will “inherit” the seller’s debt.
Here are the safeguards against that happening:
Title search Negotiation with lienholders to release the liens from the property Closing attorneys confirm clear title before they administer the transfer Title insurance in case … (7 comments)