What Liens Get Wiped Out
I am looking at a property with the first mortgage foreclosing. There is an mechanics lein(electric) and something from a car dealership (not sure what this is). Are these liens wiped out after the foreclosure? Can you make deals with these kinds of things? Do they prevent a sale?
Typically, junior liens are extinguished by a foreclosure (Sheriff's Sale, Trustee Sale) sale. If you attempt a preforeclosure sale, you must contact the judgment lienholders and negotiate for a satisfaction and release.
Priority liens (property taxes, IRS, etc.) are usually not extinguished at a foreclosure sale.