Mixed Use short sale

[Daren Wang]

Hi guys, I came cross a deal, a front retail shop, 2nd floor 1bed 1bath, 3rd floor 1bed 1bath. The cap rate is great. Only concern being the title, hopefully, some experienced investor could help on that. I dig into the deed record, the current owner bought the property from a couple and created a note mortgage with them in 1996 for the amount of $170,000, and supposed to pay off in 2001, and got extended to 2005 then again extended to 2011, however, 2012 the current owner had a new mortgage with Chase bank for the amount $250,000. My question, is the title clean from lien from previous owner, since the couple had the note with current owner. Or simply he wouldn't able to get the new mortgage with chase if he did not pay off the note. It is a bank approved short sale, supposed chase is ok with the sale.