What Liens Survive?
If I purchase a property at the foreclosure auction, are the government liens (IRS, property taxes, etc.) the only liens that survive the auction? I am assuming that this is a 1st position mortgage foreclosing.
Liens have a status. In the forclosure process the liens are only payed if there is access money left over after the lender takes his amount along with the costs of the forclosure ect. So If there is not enough money to cover the liens they are then usually "Satisfied"
There are different types of auctions... for example, there are the forced public foreclosure sales (Sheriff's Sale, Trustee's Sale) that are the culmination of the foreclosure process. Then there are REO auctions such that REOs are placed with an auctioneer to rapidly liquidate invesntories of REO held by multiple lenders.
It's best to ask what liens remain when bidding at auction. Priority Liens (federal taxes and local property taxes) are superior to mortgages... so they might well remain.
Best to check what interest is actually exposed to auction.
It's best to check with you state statutes. It is my understanding that state taxation liens may also survive. The same applies in some states to Mechanic Liens. The long and the short of it is that there are hidden liens you need to ask about.