Liens On Foreclosure Properties
If you buy a foreclosure property at auction, does that erase all liens on the foreclosure property, or could you potentially have a huge problem if there are liens on the property?
If you buy a foreclosure property at auction, does that erase all liens on the foreclosure property, or could you potentially have a huge problem if there are liens on the property?
Some other liens stay as well. All City State and Fed liens such as weed cutting etc will stay. Only junior liens where the owner borrowed money or signed to have the lien recorded. Judgements liens stay too wher the hospital sued for a broken leg etc
Good LUCK and Thank You
Hope this helps some
Ted Jr
NO!!!!!!
Depending on which lien is foreclosing, ALL JUNIOR liens to it are erased. Any senior lien will stick (rare that the foreclosing lender isn't in first position) BUT - tax liens always stick as well. They are top dog.
It is my understanding that if there are profits from the sale they go to cover the outstanding liens.
Does anyone have a recommendation? Is it best to spend the money to have the title pulled on properties that you know you'll be interested in at the foreclosure auction prior to the auction? Or has the bank that you'll be buying it from already done this? I noticed while looking through the lawyer's forms to the county that it looks like the bank is adding a fee for a title check. If that's true, wouldn't they also have included in the payoff amount anything that's outstanding, as in order for them to take title to the property, wouldn't they also have to pay off any outstanding liens and such? Thanks in advance for your input.
ted - judgement liens are not placed on the property. They are placed on the individual. Once title has passed hands, most judgements would be signed off on because the individual does not have a stake in the property any longer.