Everyone is giving ideas that work (in their experience) and you are spending time and energy defending your current strategies.....which are not working.Is is possible your agent isn't the best for what you need to do right now?  

In 99.5% of the time the TLC will be paid off at some point as the lender wants to defend their position.If you really are buying a TLC in the home of getting the title make sure you know the rules.

Did a record search and found no liens, however there was a lawsuit made by the owner against the lenders/debt collectors, that was ruled in favor of the defendants and closed.

@Michele Orgell  while I am no way defending this guy don't know him.. 

Without the utilization of Reg D, the plaintiffs would have more chance of winning under various legal theories, attorneys are more willing to take their cases, cost of defending yourself is much greater, and outcome far less certain.

Follow the law and you should be in a legally defendable position.

Liability coverage can also help pay for the cost of defending you in a suit, if you are found to be at fault.

Wouldn't the PM legal representation be able to defend both of you rather easily?

Since the OP's first awareness of the three judgments was on receipt of the title search I suspected they were either not named or he didn't know to look at the docket for the Defendants or the pleadings to ensure they were properly served. 

I am not trying to defend any TK when I say this but in my mind I am thinking the bigger, established TKs got to their size and have lasted this long (10+ years?)