There may be Liens and Judgments against the property and/or the borrower as well as Materialman’s or Mechanic’s Liens against the property.

My girlfriend and I put an offer in for a duplex in Highland Park Richmond for $10k below asking ($95k to 85k), seller pay closing. 2009 the roof was redone, all new plumbing, electrical, mechanical, the permits are all completed and approved.

. - this one of possibly thousands of small mechanical steps that go into the decision making process during renovation and flip projects.

If the property is rented, and the borrower is in default, you need a mechanism for the rent to flow through to you until you get repaid.  

This house also has had top tier foundation stabilization, waterproofing, and main drain sheathing done to it, has recently new roof and mechanicals.  

I have never done this technique and I have only known one guy who does this, so I cant even give you the total mechanics of the deal.

@Doug Haisten Equity is the sale price minus amounts owed on all liens (mortgage, HELOC, mechanics and tax liens, etc).People in foreclosure generally have little or no equity. 

Do mechanic liens stay with a sheriff sale?

By the way, a mechanics lien on your property is really  no big deal either.  

This means removing 100% of C violations (mold, fire safety, mechanical), 80% of B violations (vermin, loose fixtures, broken tiles, smaller stuff), and 80% of A violations (really stupid items like a light bulb out).There are more - so many more.