What Liens Survive A First Mortgage Foreclosure At Auction?

8 Replies

Property taxes, any hoa debts whether a lien is filed or not, city/county code violations, utility charges, irs has right to redeem for 120 days, which they never do.

@Wayne Brooks thank you. So the only liens that get whipped out are second mortgages pretty much? When you say utility charges you mean water correct? It’s my understanding that Florida Power and alight balances are 0 for new owner even if there is a balance.

Originally posted by @Brad Warshaw :

@Wayne Brooks thank you. So the only liens that get whipped out are second mortgages pretty much? When you say utility charges you mean water correct? It’s my understanding that Florida Power and alight balances are 0 for new owner even if there is a balance.

 Add in there some State liens and support liens if they have been converted from a judgement. 

Utils are generally water and sewer. Most power companies are not govt entities so any remaining balance typically stay with the borrower. 

I do not know about Florida, but in general any government lien should survive--ordered child support, alimony, government hospital bills, as well as any liens that were NOT notified of the foreclosure action.

Run a title report and make sure there isn't a lien that seems like it's connected to the previous owner that the foreclosing attorney may have missed. All liens must be included in the foreclosure filing to be properly wiped out.

Originally posted by @Lynnette E. :

I do not know about Florida, but in general any government lien should survive--ordered child support, alimony, government hospital bills, as well as any liens that were NOT notified of the foreclosure action.

 Those liens you mentioned get wiped out, other than those not notified of the auction.