I will try and be brief, always a challenge for me, as it seems, once i share my experience, ask for advice, create a thread, it gets hijacked by an autoresponder claiming I am trying to solicit business in some way. ...

He explained that it had gone down at least 100 points because he had recently co-signed an auto loan for someone.  

For mechanical subs, we pay after they pass their city/county inspection.

We had the utility between tenants and it was a bad deal for us as we had several tenants fall behind on there bills and utility company transferred into our name auto even while they tenant was living there and fell behind on there rent then they continued to stay through eviction running bills up and we was not able to shut off as we was not a utility company and land lords are not allowed to take it away here in Ohio so we got screwed and still trying to chase them from job to job attaching wages its been years.

Those which are eligible for these programs are vacant/abandoned, vandalized (stripped of mechanicals, plumbing, electric) and are in need of more repairs than they are worth if someone were to buy them from the owner due to the amount of back taxes due.

any property that @Engelo Rumora sells to an investor and maintains through his property management company receives a 1 year maintenance guarantee that covers all of the mechanicals of the property (water heater, plumbing etc) as well as a 1 year placement guarantee, not 2.

I presently have a contract with a seller on a home and going through some inspections of the mechanicals and well system.

So keep it safe, pay more for quality, do all heavy mechanical up front and factor it in your costs to avoid costly HVAC, elec, roof, windows, plumbing later on.  

Upon inspection, the house passed with flying colors, I had a structural and Mechanical engineer's letter deeming the home safe.

And yes is you buy a junior position the other mortgages senior to you stay in place but the IRS goes away as stated.. its the first in time is first inline ... so say you bought a second TD and there was a first td and a few mechanics liens filed before the 2nd was filed then those stay.. although rare because the second usually wanted title insurance and would not fund with liens in front of it.I loved Trustee or Sherrifs sales when IRS liens were there.. it scared all the newbies away.. and or those that had to back fill with a loan ASAP and could not wait out the 120 days.