A reverse mortgage is that loan guaranteed by a lien from the home that is in first lien place. Which means that virtually any liens filed by other creditors contrary to the home following the reverse mortgage will be subordinate towards the lien that is prior.
I would personally need to recommend you counsel about the rights of other lienholders that you contact an attorney who practices in the state in which the property is located to give. We truthfully don't know just exactly what legal rights the judgement owner might or might not have in a state and I also would doubt that any loan would shield you against other judgements.
There might be a hesitancy from the area of the other lienholder to try and enforce the lien with extra action prior to your ultimate purchase for the home (though and this would be something to discuss with your attorney if they even have that right in the first place) due to the priority of the reverse mortgage and what that would require of them. (more…)