Our plan is to take her security deposit to pay for the replacement of the carpeting and to write her an invoice for the remainder of the bill and take her to small claims court if she doesn’t pay the outstanding balance.

Tax deeds are recorded in the county real estate records.With that distinction in mind, I'll try to answer your questions:Properties with outstanding tax liens are sold all the time - the closing attorney pays off the tax liens with the proceeds from the sale just like he or she would pay off an outstanding mortgage or any other lien on the property.If a property is sold at a tax sale, the previous owner can't sell it to someone else without first redeeming the tax deed.  

OUTSTANDING!!!

That and my subsequent experience as a Real Estate Agent is a foundation for a new initiative, a new result and an outstanding life.

There is an outstanding out-of-print book out there called Equity Happens which I think you should read.

Is there an offer on the property below the amount of the hard money outstanding? 

.$600 closing costs rolled into the loan...25-yr am schedule with a 15-yr draw period...true interest only payments on the outstanding balance only. 

@Ricky Knack Well, Someone is responsible for it.....typically your purchase price is enough to pay off All outstanding debts, and they simply paid from the seller’s proceeds at closing.  

My wife and I currently own the following properties in Ottawa, Ontario:1 - Primary residence - ~650k value, 475k outstanding mortgage2 - Rental property #1 - ~500k value, 231k outstanding mortgate, HELOC of ~70k available. 3 - Rental property #2 - ~220k value, 145k outstanding mortgageIn the next couple years, we're possibly looking into purchasing a new primary residence and we'd like to convert our current primary residence to a rental property if possible.

I'll have an outstanding HELOC that's just sitting there?