Possible $10k Deal with Roadblocks- NEED ADVISE

[Spencer I.]

I have a great wholesale deal under contract for 45k.
ARV100k
Repairs 5k-10k cosmetic only
Price 55k

I have at least 5 investors with cash ready to go BUT, the previous owner claims the house was never paid off and placed a lein on it for 70k (owner financed back in 1998). But the house is in the sellers name (taxes and deed), and the sellers claim the house was paid off. I actually spoke with the previous owner who says the sellers deceased father filed bankruptcy 3 times and never paid it off plus interest hoa fees and back taxes. So he wants 70k to release the lein, but will not furnish any paperwork at all. I think it's possible the sellers did pay it off.
What would you o to make sure you don't loose the deal if there is still a deal there?

All opinions welcome.

[Don Konipol]

Don't waste your time becoming an advocate for the seller. If the seller wants to sell the property and if the lien has been paid off he will need to hire an attorney. Shopping a title insurance company in the hopes one will "miss" a current lien is a waste of time.

Really, all you have as evidence of clear title is that the seller says his father paid off the house. Numerous deals die because sellers either lie about liens hoping somehow they'll get away with it or they have been misled. It's very possible the seller's father TOLD him he had paid off the house. The filing of multiple bankruptcies was done to stop foreclosure. IMO the lienholder's story rings true, not the seller's.