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We are interested in purchasing a property that is in the foreclosure process but liens exist.

The current owner had a lien against this property and recently went threw a bankrupsy but lien still exists of over $1 million for their business that went under.  The house is only worth $220,000 and is under foreclosure.  The first bank offering the mortgage loan is foreclosing on the property, but the second bank for the business holds the lien.
If I purchase this property will the million dollar lien exist for me on this property?
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May 11 - US
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Answers (3)

I agree, a real estate attorney would be the best for this situation.
Best of luck.
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May 11
Find out if the current owner's attorney has or can apply to have ALL liens removed from the property as part of their bankruptcy filing. 

 Another possible option is for the current owner to offer $1,000 or $2,000 to the holder of the $1 million lien to "release the lien only". The remaining debt would still be owed. This would allow the property to be sold to you without the million dollar lien. 

Junior lien holders will often release their lien for very little money if it can be proven that the home is selling for less than is owed and the owner is not receiving any money from the sale. The owner can provide the second bank with a letter of explanation that the house is being sold as a "short sale", a copy of "your appraisal", and the preliminary HUD-1.
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May 11
The laws on this vary from state to state.  Ask an attorney
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