I believe, also, if the judgement is older than the the foreclosure then it survives the foreclosure and stays attached to the property.

Having barely survived 2007-2012 is making feel like  Déjà vu all over again.

@Theresa Harris rent - (mortgage+HOA+insurance) - property management. = $38.

A foreclosure costs 5-10k the lender can wipe most liens and pay less in HOA fees by proceeding with the foreclosure (taxes and municipal liens survive the foreclosure in most states).Holding hope that you can negotiate with other lien holders is a waste of time 9 out of 10 times, you are better off discarding those prospects and move on to the next.Prime candidates for short-sales are properties with no or little additional  debt aside from the note holder ofcourse...So start there!

Just as @Theresa Harris said, itemize the repairs they were responsible for so you can try to collect on those at the very least.

@Theresa Harris Thank you.

Hey @Blake Harris!

We have been doing this for 21 years now and the only way we have survived where very few of our competitors have is because of flexibility. 

I can email you a copy of b to c contract from Harry Borders if you need it. 

Thanks for your replies.This is in Austin,TX region where I am told putting 2% as Earnest money (400K * 2% = $8K) is quite common to show the buyer is serious... and also Inspection-waiver clause is something that I have known few friends have done to win an offer.With the several hail storms over the years in that region, @Theresa Harris, @Jaron Walling There are no current leaks, but 3 separate roof contractors have suggested to replace the roof immediately (all of them could be biased)...