In the Purchase agreement it says:This PURCHASE AND SALE AGREEMENT (hereinafter called the "Contract") is entered into by and between _________________________, ________, a ___________ and/or assignee, with an adress of _______________________.That's the section that is confusing me.

I call this purchased equity.

am just up the road from you  ok a few hrs and wold love to connect with a fellow Canadian  have helped many get sorted and started in the states.. fell free to call any time

I did some research say, there is something call " certificate of subordination of federal tax lien", once the lender obtains this, the mortgage company get the senior position of the liens and they will issue the loan.

It's a beautiful system based on value.Don't get blinded by just applying one number or a figure someone calls a "rule"

Make sure you let anyone who calls you know you are a licensed Realtor. 

If the agent calls me (they are usually slow to follow up) I will make a reasonable offer subject to inspection and a study period.Everything is negotiable - CONTROL IS KING - learn how to control real estate - it is a short cut to cash flow -  it is the best way I know of assigning properties.Who controls real estate - An agent with a listing agreement (treat them well - they are in control for a period of time)An accepted option agreementA buyer with an accepted contract of sale with contingencieshttp://www.realtor.com/realestateandhomes-detail/M...Charles

I sell a house that has underlying mortgage still on a land contract, which put me at risk for a due on sale trigger (understand the risks of note being called from many prior posts).2.  

I think it is called.

@Adam Rees getting an owner-occupied loan with no intention to occupy is called mortgage fraud.