Wholesaling with a lien

[Alvaro Rodriguez]

I need help understanding a wholesale deal with a lien. Comps say the house is worth $280k. They mortgage balance is $116k and the lien is $70k. The seller is willing to take $200k, Great.

At this point how does the process of paying the lien work? When the end buyer pays at closing, does the title

Company distribute the fund to the lien holder, the mortgage holder and the seller? Or is there an extra step I need to do to pay for the lien?

Also, do I have to say something about the lien in any of the sale and purchase or assignment contract?

Thank you in advance for any help