Remption And Junior Liens
Formum Members--
I understand that all junior mortgage liens are dead after the auction.
However, regarding the Rights of Redemption do these junior liens stay "alive" until after the redemption period has ended. For example, if the owner comes back to redeem their property do they get it back at the auction price or do all the previous liens become "alive" ?
I thought it wasn't until the redemption period has ended that all the liens are officially "dead in the water".
Please respond because I'm in the middle of this on a property I bought at auction and the redemption period ends Thursday.
Thanks a bunch--Jim
I suppose that the answer to your question depends upon individual state foreclosure laws and customs... but generally:
A junior lien is extinguished as a result of a forced, public foreclosure sale. If the ROR is exercised, the liens remain attached and must be satisfied.
Even if a lien is extinguished via Sheriff's sale or Trustee's Sale... the Borrower's personal responsibility to repay the loan may survive.
[addsig]