How to use owner financing when the owner does not own the property free-and-clear.

Obviously, clear/clean title itself needs to be understood for the property in the begining.

But to some extent I agree with you, if one is running a business then these things need to have clear budget/requirements otherwise the risk of abuse is extremely high.

And I wanted to be clear that my issue was not at all about being told the truth.

I pulled title on some recently and nothing is really clear to me?

To be clear, I'm not charging anything for this, just making connections :)

i get the premise  but i am thinking any lien would have to be cleared for a lender to make a new loan ???

Property is owned free and clear. 

It was probably a foreclosure in 2016 or if it was free and clear at the time, the seller needed immediate money and didn't want the house.

I would definitely establish some clear cut boundaries with the tenant and make sure that she understands that it is above and beyond your responsibilities and I would not make it a habit with future tenants.