Second Lien at foreclosure?

Question

If I am successful bidder on the 1st lien and that is lien that is being forclosed on .
Am I responisible for the balance of the second lien??
I am in Massachusetts.
Thanks

Greg E · Answer

IRS liens go with the property to the extent that they have a 120 day right of redemption, then will fall off if not redeemed.  Property taxes are super liens and never get wiped off title.  Everything else is based on recording priority.

Rick Goates · Answer

In California the second and third etc if there is one gets wiped out in Foreclosure if they don't bid to protect their interests. The IRS and State liens  go with the property so beware!

Regards,

Rick

Dan O. · Answer

Thank You.
I will follow up in my state.

Jon Holdman · Answer

No.  But the effects of the second and other more junior liens or judgements is covered by local law.  You need to find out your laws.

Here in CO, the second leinholder has redemption rights.  That means that they can purchase the property from the winner of the auction for the amount of the winning bid.  This allows them to protect their interest in the property.  If they do not, then their lien is wiped out.  Then, the next guy in line has their turn to acquire the property.  They pay the auction amount, plus the amount(s) of any previous redeemers liens or judgments.

Other states may well be completely different.

Even with a first lien, you may still be responsible for some tax or IRS liens.  These would be more senior liens.

Jon