Generally the real property becomes the collateral for the loan and the financiers want to be sure they have a clear legal shot at the property if they have to foreclose on the property. They also want to be sure that if they foreclose on the property they have a good chance of getting their money back when they sell the property.

Their risk is whatever amount they have loaned for the purchase and their percentage of risk is the loan amount as a percentage of the total value of the property.

Yes , exactly If the property is bad, only the owner have to bear it.

While buying properties (condo, home) I found the Financiers (banks) also interested in verifying the property is good. (no law suits, good HOA, good balance sheet)

This is helpful for me.

But, I am wondering, Do they also have a risk associated?

Up to what level they have the risk?

(If the property is bad, only the owner have to bear it. Right?)