Posted by Ben (NJ) on November 01, 2001 at 11:32:26:
Generally speaking, municipal taxes are given a “superpriority” which means even though the lien may arise later in time, it jumps ahead in priority over earlier liens. In other words if there is a mortgage on the property from 1985 and I have a tax lien for 2000, my tax lien has priority over the mortgage. The Final judgment in foreclosure will serve to cut off
(basically extinguish) all junior liens, (yes even IRS liens are JUNIOR). There are certain exceptions to this rule. For example epa superfund clean-up liens have been given a SUPER-DUPER (yes that is the legal term, LOL) priority. Something like that could survive the foreclosure judgment, but run of the mill judgments and mortgages are junior.