Lein Release on properties under contract
Hello all - this is a complicated situation (at least to me) and I would like some advice for any other experienced attorney's and real estate investors.
I have a 21 Unit portfolio under contract, that is in pre-foreclosure and I am buying it at a good discount. The bank has agreed to the price along with the owner so we were able to go under contract. The bank from my understanding will be writing off a loss on this loan as there is not enough money to go around.
Here is where it gets interesting, there is a second lien on the properties from a seller of a hotel that the current owner of the 21 unit bought seller finance. obviously there is not enough money to get this guy paid off as the bank is already taking a loss. From what I am being told is that they are going to remove the lien on the 21 unit and move the lien to a different property the seller owns.
My question is, with everyone taking a loss, the title company has reduced their fees, the RE has reduced their commission, and the seller will walk away with no money, how do I prevent getting to the closing table and someone (Either the bank or the other lien holder) deciding they do not want to remove the lien or take a loss. I am concerned on spending 25K plus on appraisals and inspections just to have someone blow this up at closing.
Is there any document I can get signed that could prevent this from happening? Should I seek legal counsel to ensure this is all coordinated through someone I trust?
Any advice is appreciated! Thank you in advance.