I also have a full time job as a mechanical engineer so real estate is on the side.

@Ben Leybovich  You are like a fail-safe mechanism for analyzing properties.

Probate is a very sucessful form of marketing for us, and we emphasis the trust and confidence that comes from working with a professional in this business.

Even if the lender doesn't ask for sign-off's from contractors against mechanic liens, in my opinion, you should get them anyway.

Since Idon't use them, not quite sure of the mechanics, but they will refi you (since of course they want to sell you another loan) into a conventional loan when the hml expires in 3 to 6 months.I know I don't have many answers, but I hope it clears up the situation so you can better search for a solution. 

I just don't know how comfortable I am with leaving all the mechanicals how they are, especially not knowing of there's knob + tube behind the walls.

I have a property in GA which a contractor put a mechanics lien on almost a year ago.

The types of liens that are extinguished, if the lienholder is properly notified in the tax suit, include corporate liens like mortgages, and individual liens like a mechanics lien.

If there are four people with an interest (Bank, county taxes, mechanics lien and owner) you are just buying their interest (and they are walking away from anything to do with that property). 

I should have clarified a bit more, we would essentially just be renting out a room with a private entrance (Back-yard or side-yard entrance) and putting a locking mechanism on the interior door so that they couldn't access the rest of the house for safety reasons.