Beware of Mortgage short falls.
It is the sign of the times. Even here in Canada, homes are over leveraged and when you go to buy them the sale price may not be enough to pay off the outstanding debt on the home. So folks, when you are buying a home and your agent does their home work, make sure they check back on what the home seller originally paid as well if they have to, ask the listing agent if there is enough funds to pay outstanding liens.
The last thing you want to do is have your heart set on a purchase of a home that cannot close because there is not enough money and to book the move and pick out the new drapes only to find out on the day of closing that it is not going to happen. If you need to, have your agent put in a clause in the offer that the home owner warrants that there is sufficient funds from the sale price to satisfy all debts.
It is always better to know up front instead of on the driveway with a moving truck loaded with all of your belongings on the day of closing.
Talk to you soon.
Todd