This clouds the title on the property and they can't sell until you release.  

In reality, none of what when on previously really matters unless it left a cloud on title.

I understand that is a cloud on title, but will it prevent the sheriff from evicting them?

A co-signer gives you more security, they aren't going to watch a judgement on their credit... but given the nature of the real tenants credit, the chances of having to chase rent payments, potentially do an eviction, and file a judgement are higher.

And forget who buys at the auction, because who the buyer is actually becomes irrelevant - it is just clouding your thinking at this point.Buyer at auction purchases at the fourth position which the HOA lien is assumed to occupy.

LOLBut it also broke the chain of warranty from one owner to the next, this is not an issue for those exceptions (divorce etc.) pointed out above, but your LLC could have clouded or encumberd title and passed it to you as far as the next buyer knows or next title company knows.

If it was just on the phone it is hard to prove.I won't put anything into a statement unless they will sign a statement saying so.If they do not feel strong enough to sign then I can't put my faith in what they are saying is true or to count on it.If you don't have clear title you don't have anything.You simply have to wait it out or accept to close with a defect or cloud on the title and handle it later.Everyone usually waits it out or cancels the contract.This is also why I do not believe putting up large amounts of earnest money on short sales.They lock up the money and the chances of closing are 50/50.

I use Buildium software which comes with cloud based tenant screening software and a rental application feature.

That is an important story to understand as the cloud of student loan debt hangs over the heads of many Americans.

Your 1% does cloud the title and you can negotiate how much the owner needs to pay you (after 3 years) for you to quit claim your 1% back to him.