Foreclosure Lien Questions - Posted by Neal

Posted by Mike Stott on August 11, 2003 at 18:33:10:

It depends if the liens were named in the foreclosure and what type of liens they are. Governmental liens generally stay, although I’d check where you invest. Other than Gov’t liens, if they aren’t named in the foreclosure and existed prior to the Lis Pendis filing, you will probably be responsible for them as the winning bidder.

If the liens are processed after the sale date, they shouldn’t be your responsibility. In addition, you generally wouldn’t be responsible for liens that pop up after the lis pendis filing. I hate to be so vague, but your state law (mine is Florida) will dictate title law and the foreclosure process.

You are smart to do an “O&E”. That will show you what is against the property. With this, you can check the foreclosure to see which liens are named.

Best of luck.

Mike Stott
www.sreia.com

Foreclosure Lien Questions - Posted by Neal

Posted by Neal on August 11, 2003 at 16:05:09:

If I purchase a property at foreclosure auction and the property owner has liens (other then IRS liens) against the home, do I need to pay them off in addition to the winning bid amount I pay at auction?

If I purchase a property at foreclosure auction and the property or owner has liens that are processed after the sale am I responsible for these? What can I do to prevent this other then run an Owner and Encumbrances report before I bid?

Re: Foreclosure Lien Questions - Posted by IB (NJ)

Posted by IB (NJ) on August 11, 2003 at 21:20:05:

In addition to what Mike stated, you also have to note the priority of the foreclosing lien. If the second is foreclosing, you are responsible for all senior liens above it (1st, taxes, IRS, etc.). Anything below it (judgments, etc,) usually get wiped out. But as Mike suggested, check the laws of your state.