Wholesale house has utility liens and a judgment

[Julie Marquez]

I posted a "House Wanted" ad on Craigslist 24 days ago, and got my first phone call this morning. The older lady inherited an older house that she owns free and clear, and just wants to get rid of it and move to Arizona. It sounds like a perfect wholesale opportunity.

So our awesome county records has great details of the property online, and easy to find. I can quickly see that she has many utility liens from the City and a judgment owing about $3500 (plus about $1500 in liens). 

In the process of getting the house under contract and assigning it to the end buyer, what do I do about these liens and judgments? Do I get them taken care of them before the end buyer gets the property, or pass them on to the end buyer?

I am going to see the house soon, and would appreciate any advice before I make her an offer.

[Andrea Tapp]

I am currently working with a wholesale by assignment house in a similar situation.  I just notified the seller of the liens and told her that she can either pay them off now or it can come out of her end profit.  Either way they will need to be paid before the sale of the house.  

I personally contacted the city and got all the information and the city even dropped some of the liens in the process, but the seller will still be responsible for paying off some of the liens before the sale of the house.