Too many liens and or encumbrances on a property can make getting clear title a problem.
It is always advisable to do thorough due diligence when considering taking on a short sale property. If you live in a County that has the Civil and Public Court records online then this will greatly reduce your timeframe when doing research and also greatly reduce your risk of making a wrong decision about taking a deal. If you, like some of us live in a County that do not have this information at your fingertips then this makes life somewhat difficult when assessing a deal or no deal.
Having a good working relationship with a Title Company can help you in this situation so it is always in your best interest to build a strong team around you.
Once your due diligence is complete you will be able to quickly make a decision on whether you take the deal or not. Too many liens and the type of liens on properties can break your deal and getting all the lien holders to co-operate with you can be very challenging.
Chose the parameters that you prefer to work with and stick to them. This will save you lots of frustration and disappointment in the long run. Liens and judgments to be aware of that can be potential issues are usually private funding, mechanics liens and ford motor credit liens.
You make your decisions on what you are willing to work with. Just keep in mind that the 1st mortgage holder has the power and some lines may have to be paid prior to closing to make the deal work.
To your continued success.
Kathy Morris
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