Even if it's an active lien that's accruing some sort of interest and/or penalties they should be able to obtain a payoff letter that's good to the stated closing date.

The issue is the fact that fair market rents will be set by an appraiser in the future when the buyer applies for conventional financing.Lately, states have been imposing "equity laws" requiring landlords to foreclose instead of evict when a tenant accrues a purchase interest in an option contract, they are treating the contract as an installment sale. 

The judgment amount was around $51K in 2012 and has been accruing interest since then. 

If you are holding for less than 10 years you need to look at things differently, and if you have components approaching end-of-life now you need to ensure you have reserves/cash on hand to make those repairs out of pocket because your capex account won't have time to accrue savings from your layaway before you have to make the repairs.

At that time you can collect your principal balance and any unpaid penalties or interests that have accrued over the life of this loan.Please let me know how you make out and I can refer you to all the correct people so that the transaction is smooth effortless and secure.Good luck,Frank

You can have a situation where the debtor thinks they have moved on yet there are possible fines and costs accruing after the filing of the bankruptcy which technically are not covered by the filing as they would be considered post-filing debts. 

Usually you'll get until Jan 31 and then start accruing interest/fees after.

I had to pay that interest to the bank anyway so it really is just a waste of time for the money to transfer like that. better to pay it off quick and not accrue the interest at all. however, after all the responses here, i see that leaving the debt as is would be valuable for accrueing wealth to make more purchases in the future

@Julia Yagodina  dion pretty much covered it.I am going to assume this is a loan from investor to you with property as collateral. the interest is accrued and paid with the balloon payment at the end of the term of the note.Since CA is not a attorney closing state and is title company closing..

The thing about Bozeman's market, is, if you can get in, at any level, there's a very good chance that you will accrue some mad appreciation over a few years.