With the up market, SS clients are getting more equity. At an offer price of $330K OCWEN, first lien is paid off $250,000 and has more left before paying CHASE ($150K) ,will the utility bills from the City of Sacramento be paid off first before paying CHASE whatever is left? If not, can the buyer pay them off if necessary? 

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I read in one of the discussions that if the first lien is paid in full they may not go with the short sale transaction. 

A buyer can pay anything they want.  Yes.

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