A sheriff sale following a foreclosure action acts to "foreclose" out any junior liens or interest in the property. Typically. the party that initiates foreclosure has a mortgage that is in first position and takes priority over all other liens on the property (except for liens related to property taxes). There's numerous reasons for this which are outside the scope of this post. In almost all cases, a mechanic lien will have been recorded after the lien that is the subject of the foreclosure and the foreclosing lien will have priority over the mechanic's lien. In the event of a successful foreclosure action, the mechanic's lien will be wiped out by the foreclosure.
Just a note of caution that the mechanic lien must be properly named and notified in the foreclosure action, otherwise they could come back and reclaim.
What is the Mechanics Lien on? That could play into whether or not the lien will be wiped out in the event of a Debtor's bankruptcy. Mechanic Liens/Artisan Liens are placed upon property (vehicles, real property, paintings, etc.) that an individual has rendered some type of service upon the property, and the owner of the property does not pay; so long as the individual who performed the service has possession of the property, they have superior title to the property...no matter what...
This is obviously harder to do with real property.
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