Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
11y
You have to establish which liens are senior to the lien position being foreclosed, and which are junior; and you have to know the types of liens that are super-priority in that local area. I don't know those specifics. And proper service of the notice of foreclosure will be required to extinguish any junior position liens.
Then you have the case of IRS liens. IRS liens get in line based on time just like any other lien, but an IRS lien has a 120 day right of redemption (and potentially longer in states where redemption periods are longer by state law). Other federal liens would have a one year right of redemption. Redemption only applies if those were junior liens; if they were senior liens they survive the foreclosure.
Don't forget to consider things like HOA fees, state income taxes, child support, Medicaid, code violation citations, municipal liens ...
Rental Property Investor · Kansas City, KS · Member since 2014 · 604 posts · 222 votes
11y
Federal liens are not dissolved in a mortgage foreclosure and I don't believe property taxes are. In addition to that, lienholders that are not properly noticed in the foreclosure proceedings still hold their lien position.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
11y
You have to establish which liens are senior to the lien position being foreclosed, and which are junior; and you have to know the types of liens that are super-priority in that local area. I don't know those specifics. And proper service of the notice of foreclosure will be required to extinguish any junior position liens.
Then you have the case of IRS liens. IRS liens get in line based on time just like any other lien, but an IRS lien has a 120 day right of redemption (and potentially longer in states where redemption periods are longer by state law). Other federal liens would have a one year right of redemption. Redemption only applies if those were junior liens; if they were senior liens they survive the foreclosure.
Don't forget to consider things like HOA fees, state income taxes, child support, Medicaid, code violation citations, municipal liens ...