How to find all liens on a property at foreclosure auction?

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How to find all liens on a property at foreclosure auction?

Hemal Adani
New to Real Estate · Iselin, NJ · Member since 2022 · 68 posts · 22 votes

Hello Everyone, I'm looking at a couple of properties which are at foreclosure auction but not sure if there any other liens attached to the property. I'm more concerned about other lender liens, not worried about water or tax bill. 

is there an online website that gives all liens guaranteed?

how find open permits on a property online?

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Shafi Noss
Lender · Nationwide · Member since 2018 · 571 posts · 310 votes
2y

Challenge is if you check records the afternoon before, a lien could slip in during those few days. I would do this with a partner on the phone who checks the records like Chris mentioned and makes sure there's no slippage.  

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Hemal Adani:

    Hello Everyone, I'm looking at a couple of properties which are at foreclosure auction but not sure if there any other liens attached to the property. I'm more concerned about other lender liens, not worried about water or tax bill. 

    is there an online website that gives all liens guaranteed?

    how find open permits on a property online?


     If the county recorders office has online records that is one way. If not you can go to the office and search OR order a title report on it from a source like protitleusa.com (note not affiliated with them, we do use them to order our reports)

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  • Shafi Noss
    Lender · Nationwide · Member since 2018 · 571 posts · 310 votes
    2y

    Challenge is if you check records the afternoon before, a lien could slip in during those few days. I would do this with a partner on the phone who checks the records like Chris mentioned and makes sure there's no slippage.  

    1Reply
  • Suzanne Reinbold
    Realtor · Grand Rapids Area · Member since 2020 · 13 posts · 10 votes
    2y

    I appreciate the online records. Here in the west side of Michigan most of the counties and townships have put parcel search online. Checking the county and township websites for all kinds of information is simple. You need either the address or the owners name or the permanent parcel number to pull up the information. Mortgages, contractor liens, unpaid taxes, unpaid water/sewer, HOA dues, etc. can be found there. BSAonline.com is a great resource for some states and municipalities.

    1Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    2y

    @Hemal Adani Get a real title search done. Yes, all the liens are available online, other than utilities, pending code violations, etc., but to have to know how to find them. While most people search by owner name, you also need to search variations of the name and by legal description.

    1Reply
  • Hemal Adani
    OP
    New to Real Estate · Iselin, NJ · Member since 2022 · 68 posts · 22 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Hemal Adani:

    Hello Everyone, I'm looking at a couple of properties which are at foreclosure auction but not sure if there any other liens attached to the property. I'm more concerned about other lender liens, not worried about water or tax bill. 

    is there an online website that gives all liens guaranteed?

    how find open permits on a property online?


     If the county recorders office has online records that is one way. If not you can go to the office and search OR order a title report on it from a source like protitleusa.com (note not affiliated with them, we do use them to order our reports)

    Hi Chris, Thank you for the response.

    I'll check about online portal from the county. Are both of them accurate on reporting all the liens from lenders?
    0Reply
  • Hemal Adani
    OP
    New to Real Estate · Iselin, NJ · Member since 2022 · 68 posts · 22 votes
    2y
    Quote from @Shafi Noss:

    Challenge is if you check records the afternoon before, a lien could slip in during those few days. I would do this with a partner on the phone who checks the records like Chris mentioned and makes sure there's no slippage.  

    @Shafi Noss are saying a new lien can slip in between auction and issuing sheriff's deed?

    0Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    2y
    Quote from @Hemal Adani:
    Quote from @Shafi Noss:

    Challenge is if you check records the afternoon before, a lien could slip in during those few days. I would do this with a partner on the phone who checks the records like Chris mentioned and makes sure there's no slippage.  

    @Shafi Noss are saying a new lien can slip in between auction and issuing sheriff's deed?

    This is a very particular area of law. You are going to need to research local law on mortgage/deed of trust foreclosures vs. sheriff sales (levies to satisfy judgments). There is often a difference between the two with respect to what interest of the debtor the auction purchaser acquires -- that at the time of the recording of the mortgage (foreclosure) vs. that at the time the judgment was entered (sheriff). I'm trying to simplify this but it's hardly simple.

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  • Shafi Noss
    Lender · Nationwide · Member since 2018 · 571 posts · 310 votes
    2y
    Quote from @Hemal Adani:
    Quote from @Shafi Noss:

    Challenge is if you check records the afternoon before, a lien could slip in during those few days. I would do this with a partner on the phone who checks the records like Chris mentioned and makes sure there's no slippage.  

    @Shafi Noss are saying a new lien can slip in between auction and issuing sheriff's deed?

    I was saying that if you do your title search one day before the auction, there is a one day window where a new lien could slip in without you knowing. Especially if it's a lien immune to foreclosure, that can cost you. Things tend to happen around a foreclosure so it's not impossible. The way I would prevent that is by having a partner on the phone checking the records while I'm literally sitting at the auction to avoid that slippage. 

    As for a lien between auction and issuing the deed, I know less about how that works, but I think it's a risk. A contractor has time to record a mechanics lien, what if they did not sign lien waivers and then file after the foreclosure. 

    Like I said some liens are superior to foreclosure, like utility liens, some government liens, and in 22 states HOA liens as well. I'm not sure how it works if those are attempted to be recorded between the auction and deed issuance.

    1Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    2y
    Quote from @Shafi Noss:
    Quote from @Hemal Adani:
    Quote from @Shafi Noss:

    Challenge is if you check records the afternoon before, a lien could slip in during those few days. I would do this with a partner on the phone who checks the records like Chris mentioned and makes sure there's no slippage.  

    @Shafi Noss are saying a new lien can slip in between auction and issuing sheriff's deed?

    I was saying that if you do your title search one day before the auction, there is a one day window where a new lien could slip in without you knowing. Especially if it's a lien immune to foreclosure, that can cost you. Things tend to happen around a foreclosure so it's not impossible. The way I would prevent that is by having a partner on the phone checking the records while I'm literally sitting at the auction to avoid that slippage. 

    As for a lien between auction and issuing the deed, I know less about how that works, but I think it's a risk. A contractor has time to record a mechanics lien, what if they did not sign lien waivers and then file after the foreclosure. 

    Like I said some liens are superior to foreclosure, like utility liens, some government liens, and in 22 states HOA liens as well. I'm not sure how it works if those are attempted to be recorded between the auction and deed issuance.

    Every state is different. I’m not aware of any state that allows what would be a junior lien and would be extinguished in the foreclosure sale to game the system and record the lien in the gap between notice of the sale and the actual sale.

    There are ways to legally address such “liens” when they do arise in the middle of a foreclosure… such as redemption or surplus or even a QT action. 

    Also many states have a cut-off date (in relation to some filing or event) where notices to junior lien holders are no longer required, if actual notice was even required to begin with. 
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  • Hemal Adani
    OP
    New to Real Estate · Iselin, NJ · Member since 2022 · 68 posts · 22 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Hemal Adani:

    Hello Everyone, I'm looking at a couple of properties which are at foreclosure auction but not sure if there any other liens attached to the property. I'm more concerned about other lender liens, not worried about water or tax bill. 

    is there an online website that gives all liens guaranteed?

    how find open permits on a property online?


     If the county recorders office has online records that is one way. If not you can go to the office and search OR order a title report on it from a source like protitleusa.com (note not affiliated with them, we do use them to order our reports)

     Hi @Chris Seveney, Is this a reliable website? Did you run into any issues after gathering the report?

    0Reply
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