Moovan here is an example of a current short sale I am involved in. The first is offering a lien release at about 100k less then the loan amount, the second is offering a lien release for 1000 bucks. The sellers have not paid taxes for about 2 years so there is about 20k in tax liens.
So when the offer came in it is incumbent on the listing agent to make darn sure that the HUD estimate covers any and all existing liens BEFORE you send the offer into the lender with the HUD. That way the net to the lender is calculated with all of the other liens (tax and any others) are paid off. Otherwise you get to close of escrow and the lender has given you a lien release and boom there is a big fat lien leftover and everyone wonders who is gonna pay that lien.
If you are on the buying end of the short sale then just make darn well sure that the listing agent had escrow get a preliminary title report and that the estimated HUD has any and all existing liens on it.
As far as the squatting goes… well like OC Scam said, I will look for the hardback cover in July!
