There will be no deficiency judgement or credit damage.

Issue is getting the seller to go for it.. unless there is a formal assumption and the seller is relieved of their liability to the existing mortgage the seller remains on the loan and therefore if its a loan reported to fico it stays there and if its a loan that has a possible deficiency judgement against the owner that stays there.So its no issue really for you as a Buyer the main issue is risk to the seller  IE you default and the seller is in some tight spots.. they have a mortgage in their name but do not own the asset you do. 

If it is worth the effort, then you’ll get sued for $50k deficiency (difference in purchase price between sale 1 and sale 2) plus the costs of advertising the 2nd sale.

I purchased a property about six months ago that went through a three piecemeal inspections with a home inspection firm.  Each home inspection didn't cover the entire house, but only portions of the house they were ab...

In our city, we cannot afford the consequences of losing any more affordable housing units from a supply that is already in a desperate deficiency,'' Raman said.

The IRS, however, has 120 days to redeem the property, as it generally can in local tax lien sales.Any lien holder, including the IRS, can then go to court to obtain a deficiency judgment against the original owner.I would value any additional input here.Bob

That said, as @Nathan G. pointed out, it takes about 5 minutes to cure the other deficiencies. 

Can't get insurance on these properties, can't unload them for what you're making on them, they all have major structural deficiencies, it's a whole big house of cards waiting for a match and a push.Did the pandemic screw Budhoo?

What you want to stay away from are actual structural deficiencies that would HAVE to be repaired to prevent a failure.

The whole relationship has gone badly as his performance as a builder was extremely deficient and this whole year I've dealt with a lot of other minor contractual and performance failures on his part.