OUTSTANDING!  

I'm sure they will pipe up shortly.Personally, I have never used Mid South to buy properties, but I have an outstanding working relationship with them (we are friendly competitors here in Memphis).  

I was told by the representative that the back money was added to the taxes for the 2016 tax year(No goood) and the outstanding amount stays with the property.  

If the property being foreclosed upon reduces in value below what is currently borrowed, the lender would loose the ability to effectively recover the outstanding balance.

Outstanding, Marine!

.….Unless your just such an outstanding catch that the nup could be overlooked......like me....yeah....like me. 

Second place I talked her out of making any offer because she wanted to make an offer so low it wasn't going to cover the outstanding mortgage.

One thing I would say is don't wait until it is up for auction, if you need to look into paying the taxes that are longest outstanding so that the county can't put it into foreclosure before you have a chance to work something out with the aunt.

Multi-families will go by different numbers... usually about 10% lower than SFR's.Then I like to look up the address and about a city block of that street in the enforcement and permit database https://accela9ca.indy.gov/citizenaccess/ to get an idea of the problems in the area and outstanding city issues with the home (these should be cleared up at closing.)

In cases like this you can pro-rate the bills by the bedroom count, in this case 75% of the bill to the 3 bedroom and 25% of the bill to the one bedroom.Just make sure whatever option you choose is clearly written into each lease.Also, to protect your risk of paying the utility bill (and charging to the tenants) and the tenants are not making payments on it, a good practice is to make sure that when rent is paid (if they are paying rent but leaving out the utility bill charge), that the rent payment is applied to any outstanding utility bill charges first and then towards rent.