Do liens on properties that go into foreclosure not have to be paid back?

Question: I have a lien placed against a home for some personal unpaid debt that someone owes me. Their house recently got foreclosed and I attempted to contact the bank who now owns the home to collect from the lien as I thought liens had to paid in the event of a sale, is this excluded from Foreclosures?

Response by Pratul Lakhotia: The verdict of this matter ultimately depends on the Real Estate & Foreclosure Laws of the state which the subject property is located in. For some states, in a Foreclosure, secondary liens besides the primary mortgage become released with no obligation to be paid back. In other states where the laws are different, one of a few possible outcomes can occur:

• The lien gets transferred to the new property holder
• The lien must be paid before ownership can be taken
• Liens, such as tax liens for example, transfer onto the primary debt holder with a security instrument (the home) no longer present.

You can view our Foreclosure Law State Resources page to view the laws in your state.

If you need legal help preventing or enforcing the collection of a lien against a property, contact a Real Estate Attorney.

Disclaimer: This site does not provide legal advice and users of this site should not interpret any of the information presented here as legal advice. The information provided merely conveys general information related to commonly asked legal questions. We are not a law firm and the employees responding to questions are not acting as your legal attorney. You should ultimately consult with a Lawyer for your case