Lien not removed in previous foreclosure

[Gil Ganz]

Hi

While reviewing a deal to purchase a performing contract for deed in AZ, I have ordered an O&E report and learned there is a 5K lien that should have been wiped out when the property went through foreclosure (DUI charge on the previous borrower, under previous lender).

The loan I am about to purchase is in 1st position, and the LTV is <40% so I don't see FC happening here. I'm trying to understand the importance of that DUI lien. From what I understand there shouldn't be a problem removing it but it will have its legal cost. The question is will it be something I ever need to handle and if I do what will be the cost.

[Chris Seveney]

@Gil Ganz

What is the terms of the land contract and what type of deed are you providing them?

If you are providing a warranty deed eventually you will need to pay it prior to transferring ownership over to him or have it removed as a warranty deed I do not believe can have prior deeds on it