Liens on Foreclosures

4 Replies

So I'm new in real estate investing and my first investment that I want is a foreclosure. I'm trying to learn about liens and which ones are 1 mortgages and which liens survive the process of foreclosure. So when searching the properties that I'm interested I thought, hey I have a month subscription on https://www.neighborwho.com with unlimited searches so, I thought I would look up my mom's house and my sister home where she was the tenant. I noticed my sister had a lien on the house however, she's not the owner but the tenant. My question is if I purchase a house or a duplex with a lien in the tenant's name does that lien survive the foreclosure?

Most (not all) liens do get wiped out in a fully completed foreclosure. Your best resource for a solid search is the local town/county hall. I would not trust that service to be able to compile all national lien data - that's a near impossible task for an internet aggregator. Maybe a prescreen, but if you find something specific of interest go search yourself or order a title exam locally.

@Minna Reid thank you for replying to my question! How would I order a title exam? See I'm very busy as I own a mold remediation company and am the only employee. I would like to do everything online if possible. I'm in Philadelphia so the sheriff sales are all online now.

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@Mikey Grabon You can do a title search on the property before the sale. There are independent searchers that will either go to the county and pull all applicable public records. They will generate a report for you to show you what liens exist. @Minna Reid is right that most liens should be cleared in the foreclosure process but not always. I would talk to a title company about this because it does change from state to state how it works.