I am looking at a property on auction.com that has an abstract of judgement listed on the title information given. This property is an REO and the AJ is from what seems to be a plumbing company. If I purchase this property do I need to settle the AJ? It was filed back in 2005 so I'm not sure if they actually expire after 10yrs. What else do I need to consider when looking at this property?
Generally, as long as any lien or judgment was recorded after the mortgage that is being foreclosed,they get wiped out in the foreclosure. Read the terms of the auction. If that doesn't clear it up, ask a title attorney/agent.
Be careful. There are some types of judgments that do not get wiped out. Consult an attorney. Child support, for example. In some states an HOA lien is considered a Super lien over and above a Note. To avoid an expensive mistake, consult a real estae attorney.