foreclosure auction

**purplese03** · 08-17-2009, 07:51 PM

I may be looking to get a house via a foreclosure auction. I know what I would be total, but have a question about a statement in the foreclosure document.

The statement is made, "This sale is subject to all prior leins, easements, restrictions, covanents, and conditions of record, if any."

What exactly does that mean (I understand all but the lein part)? Does it mean the winner is responsible to clear the current leins on the property OR does it mean the proceeds from the auction will be applied to the leins? I want to know that I am going to get a free and clear title when the deal is done.

FYI, the title search is part of the package and the leins are for about 1 year's taxes and the mortgage.

**wolfneyetna** · 08-17-2009, 08:23 PM

Dude, you're scaring me.

I was all set to answer this question, then I noticed your hyperlink at the end of your post. I'm wondering why someone who's offering mortgage loans is asking a question like this.....

At any rate -
Any lien that's superior to the mortgage being foreclosed will remain after the sheriff sale. The public auction will clear the lien on the mortgage in foreclosure, and any inferior liens (say, a second mortgage or a mechanic's lien). But typically tax liens - both county property tax and (sometimes harder to track down) federal income tax liens - will remain.

If you can get an owner's title insurance policy, you're well advised to buy it if you're buying property at auction.

Disclosure: I'm a Realtor, not an attorney. You should get competent legal advice on this.

**Greg** · 08-18-2009, 05:20 AM

Originally Posted by wolfneyetna

Dude, you're scaring me.

I was all set to answer this question, then I noticed your hyperlink at the end of your post. I'm wondering why someone who's offering mortgage loans is asking a question like this.....

They are just here asking a bunch of real estate question to get links for a website they are working on. Check out their comments list.