My fiance's mother lives up there and last we spoke she was concerned about her home losing value.

That way if you lose a tenant, you will be able to cover your minimum payments. 

If the lien(s) amounts are too high, at that time if I back out, I assume I lose my earnest money and also $2500 deposit with Homesearch.com?

Neither are my fault, but nonetheless - you are correct.Luckily for me, the property is worth more than 60k so I'm not terribly concerned about losing money on the investment at this time...

VP of Operations at a college (new construction, Facilities and Grounds, SFR purchase in surrounding neighborhoods), Personal residence (live in  flip), MBA emphasis in Entrepreneurship, Analytical work for a private equity firm-Mike

I didn't lose any tenants and it makes a BIG difference getting the additional revenue. 

Keep in mind Debt service needs to be filled in meaning based off my calculations they lose money every year. 

If those expire, the property will lose some value as entitlement work has to start over and entire project could change as a result of CIty and Costal Commission.Bob Faulis

I always lose at gambling.Frank

Even if you end up in court and lose, the loss will typically be covered by insurance.