Yes, the holder of any note secured by residential properties will be taking on liabilities, not only that, but certain proceedures under events of default will be required.

Your local knowledge and resources should provide an opportunity to disposition said asset that reduces the expenses and time to recover or collect.Understand also, that banks are not the only holders of loans.

Thanks @Brianna Schmidt for the mention.Garth,1) renegotiate the deal - get it for $3K instead and mention the liens as leverage (mention $2K as starting point and then go no more than $3K)2) once you have it under contract, get Power of Attorney from seller so you can negotiate with the lien holders in his behalf3) negotiate with the lien holders (the 8 liens totaling $3K).

This obligation shall be serviced and administered by a sub-servicer appointed by the Holder and as to any change of servicing, the Holder shall provide at least 60 days notice or as may be required by applicable law, whichever is less required.

If you weren't the policy holder, then you would have to get the person who had that policy in their name at the time (sounds like your brother) to file the claim and get things going.One other item to keep in mind is that you also need to know what the deductible is for water damage under that policy (if there was one in place).  

If not you can pay for a study performed by a holder of the CRE designation or the MAI designation. 

For Rental I have 2 properties that I want to place under LLC and any new but have researched and found when moving into an LLC entity the note holder/lender may want the payment in full for the loan. 

Yes, there are occasional times where you also need a signature from the current deed holder.

The Holder that buys with cash simply refinances when ready.  

You can also appoint a new Trustee as the note holder.