There are no outstanding mortgages on the property.I talked to the management company for the HOA, and they tell me that the only outstanding obligation they are aware of is a letter from the IRS notifying them of the possibility of a lien.

Was it an outstanding loan balance paid off? 

For instance, on one note I bid on, the property had $10K+ taxes outstanding, but in their system showed as current. 

Take for example the cancer survivor who has extremely high and outstanding medical bills but always pays everything else on time.

See this excerpt from our rental criteria:FINANCIAL/CREDIT HISTORY1.No outstanding debt to previous rental property owners.2.No outstanding debt to utility companies.3.No outstanding debt in excess of $1000 that is not in a payment plan.4.No excessive monthly financial obligations - more than 20% of income.5.Lack of credit history or marginal credit history may result in additional security deposit. 6.Derogatory credit (past due accounts, collections, charge off accounts, tax liens, judgements in excess of $1000 and/or bankruptcy) may result in additional security deposit or denial.

It was invented by Blythe Masters from JP Morgan in 1994.By the end of 2007, the outstanding CDS amount was $62.2 trillion,[3] falling to $26.3 trillion by mid-year 2010[4] and reportedly $25.5[5] trillion in early 2012.

. - Lao TzuAfter joining BP last year and listening to so many outstanding podcast it's time for my journey to begin.

not sure how it's done by you but in New Orleans when they get ready to auction off the sale the auctioneer will read off and let you know if there's outstanding balances.

I agree that transferring a property with an outstanding mortgage to an LLC can be risky proposition.  

It's all about how you want to do your bookkeeping,, carry over the balance every month, and continue to send past due balance notes on the outstanding late rent fee or write it off.