Foreclosure With Liens Do These Get Wiped Off
Property in California. House is worth $115k today 1st was $94k on 4/30/99 then 7/2/02 Cal State Lien then 10/21/02 Abst Jdgt Now property is NTS. What if any of these liens will stick after auction on nonjudicial foreclosure? I am pretty sure state tax lien does not but would like some input from those that know. Thank you,
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Only liens where the owner borrowed money or did a purchase money mortgage will be "wiped out". The borrower may still be held liable for and shortfall. If the property sells for more than the first mortgage the trustee will have to pay money to the second holder. I am not sure of the order here but have never really cared. I got wiped out a few times when I owner financed and did not want to cure the default on the 1st.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
So what you are saying is that if the property sells for more than they are asking the money goes to liens. If no one bids on it and I pay $0.01more than the trustee asks than it gets wiped out?
Or do I owe the money when I go to sell the property?
Thank you
Tax liens and government liens will not always be wiped clean, in fact, they will have to be satisfied before the sale is completed. Taxe liens are the priority liens and IRS liens as well. Becareful and check these thouroughly. Good luck