This is why all tax liens survive but the mortgage liens are wiped out once a property is forclosed upon for taxes.The government (city, local, county, or state) will usually contact any interested parties (lien holders) because all they want is their money which is usually a small amount usually in respect to all mortgages.

That's a usual and customary basic real estate approach to share title interests while operating and phasing other title holders out of ownership.

You wanted to negotiate with the bank, but if it is a short sale, he still represents the mortgage holder/owner.

They are mostly used for self directed IRA holders, but if you are getting good enough deals, you can use them for an entity purchase without your personal name on the loan.

If the first holder is owed $50k and the property is worth $50k or less, you are out in the cold and lose your money

I am looking to purchase my first 2-4 unit building as an investment based on research, my assumption is there will be holders of Section 8 certificates interested in the areas I am looking to purchase property.

Here are the numbers on the deal: Property Details 1.Condo in 4-condo building.2.3 bedroom, 1 bathroom 3.2-level. 3 bedrooms and bathroom all upstairs4.Laundry closet5.900 square feetPurchase and Rehab DetailsBought for $95k (including fees) all-cashSellers paid $50k in property back-taxes to bring property to good standingHad to get a bond because there was a small loan against the house still on title and the note holder had since gone out of business and could not be located.Rehab ended up costing $36k.

On my last refi of a property, that particular mortgage company contacted all of my mortgage holders and made sure that everyone reported to the credit bureaus.

Is it just the bank or mortgagee provides loan closure OR if there is a Note holder, do we need to get a statement from them about loan closure. 

Account ClosedIf your the lender insurance only helps you if you own the property or the borrower does not have it then you get forced place insuranceI am not aware of an insurance company that will give you a policy to cover you from getting suedRemember if someone gets hurt on property and your the note holder that is not your issue - just like if someone gets hurt at your home they don’t sue the lender