Liens on Occupied REOs.

[James W.]

Hi,

I see that when banks sell Vacant properties - they pay off all liens and encumbrances and deliver a clean title, that can be insured.

But when they sell Occupied properties - it seems the Liens and everything pass on to the new buyer.

is this correct?

If yes - can someone explain why wont they pay off the liens on Occupied? What is the technical difficulty there? Whats stopping them when they can do it after vacating the house?

Thank you.