best tactic
a lot of people in foreclouser usually have 2nd or 3rd even some personal lien against the property. What do you do in this situation if you are doing in short sale( if mortgage is about the FMV) or Purchasing agreement with the owner( he has a lot of equity) 
If the total amount of leins against the property is close to the FMV, then you can do a short sale. Depending on the amounts of each loan, you can have the lenders discount the mortgages enough so that you may purchase the property at a lower price. You will have to convince the lenders that the home is worth less than it really is. If the property is in need of repairs, then note what kind of repairs and get estimates to show the lender.
What type of personal lien against the property? If it is a tax lein, then you have to pay that off in full. You cannot discount a tax lein or IRS lein. Depending on the type of personal lein, you can have it attached to the homeowner by form of a promissory note instead of being attached to the property. I hope this answers your questions.
Tanya[ Edited by tanya1215 on Date 04/11/2003 ]
Are you saying that if an owner has a lien against him [other than tax lien] that the owner would be allowed to sign a promissory note and thus the lien would be removed form the property? Does the person who filed the lien have to approve?
Question Re: previous post below
What type of personal lien against the property? If it is a tax lein, then you have to pay that off in full. You cannot discount a tax lein or IRS lein. Depending on the type of personal lein, you can have it attached to the homeowner by form of a promissory note instead of being attached to the property. I hope this answers your questions.
Tanya
This is so next level investing right here!
I wasn't aware it was possible to use promissary notes with the irs. How does that work?
Where is TaxJunkie!
You can contact the leinholder of the personal lein. Let them know you are purchasing the property from the homeowner and ask them if they would take a promissory note from the homeowner so that the lein is taken off the property. If not, then you can ask if they are willing to take a discount. If they are willing to take the discount, then pay them off. It depends on the lein, like I said. Some leinholders are willing to take a promissory note, you have to ask and find out.
IRS will not take a promissory note. You have to pay off the whole lein if it is an IRS lein or a tax lein.
Tanya[ Edited by tanya1215 on Date 04/11/2003 ]
In most negative equity situations, generally speaking, in the case of multiple liens, the junior lienholders are paid less than they are due, while the senior lieholder(s) are paid close to 100% of what they are due. Sometimes, to facilitate the transaction, they'll agree to reduce penalties, or other foreclosure related costs.... but they'll expect that the junior lienholders will take the hit.
IRS liens, like any other, are negotiable.
Would you be able to use a promissory note collateralized with a property you already own to take the lien off? For example the lien is $20,000 and you make an offer to pay $10,000 note at 8% interest in 5 years to take the lien off the property. Then sell off that note for quick cash?