Seller Financing - Existing Liens

[Kelly Brunson]

I recently came across a great off market deal on a duplex.  I knew the sellers had negative equity and were considering a short sale but the property looks promising at their asking price.  I did a title search on the property and found a few concerning items that could make this deal complicated:

-There are two mortgages on the house

-The house is not in the name of the current sellers, it was apparently their recently deceased father's house.

-The deceased's ex-wife has a $35,000 lien against the house.

I was considering trying to work a seller financing deal with them (I am self-employed and cannot qualify for a conventional mortgage).

After seeing the title I am now wondering if such a deal would be possible and how seller financing or lease options would be handled with these liens against the house.  Anyone have any experience on this? Thanks in advance.