The bank could have done their title search just before the lien was recorded, then closed later without updating the title search.....or they could be aware of the lien but due to the equity, made the loan anyway.  

. - Just updated this when I Re-read last post and saw that you have 9k in savings.

Since I was in Texas and planned on staying there after I graduated and I found out that I was qualified to take a test and become a real estate broker license, so I took the test and got my license.I kept that license active for about 30 years but I never did use that full time.  

Just an update...I signed a contract on the house yesterday. 

If you're not living rent free, I would find a way to temporarily get into one of my properties, or stay with friends/family till you get on your feet.Use this as the motivation you need to get out there and find another job.

Since I was in Texas and planned on staying there, I found out that I was qualified to take a test back then (1980) and get a broker license, so I took the test and got that license.  

Cosmetically, it needs lots of updating, and it doesn't have some standard amenities like parking and central air that most expect in this neighborhood.

It sounds like you have a place to stay. 

My real issue isnt the price but the CoC return, if I add another 15k to the deal (over appraised value) my CoC is better suited to stay in the securities market for now.

Update the appraisal, update the prelim, and finally go out of and back into contract 5 minutes later at the same table.