Are you responsible for property liens on a foreclosure going to auction?


Good morning!

I just received a property title report. I was looking over the report and I saw 9 liens. Are those liens against the property? So if it went to a Inrem foreclosure auction and we bid and won the property would we assume those liens?


Derek A.



Hello, whether outstanding liens and encumbrances, i.e., mortgages, homeowners association assessments, delinquent taxes or other liens must be paid before clear title can be transferred, typically depends on whether it is a short-sale, foreclosure/trustee sale, bank-owned or conventional transaction. In some cases, short-sales and foreclosures/trustee sale may require that the liens are paid before clear title is transferred, and how they are paid is usually negotiated by the buyer, seller or a combination of parties. Please contact the seller or its agent to inquire about any liens on a given property in which you are interested and/or how the property will be deeded or transferred to the buyer. For example, will the buyer receive a warranty deed guaranteeing clear title to the property, or will title be transferred with the liens, making the buyer responsible for the existing liens? You would also need to double check for any addendum’s by the bank or documents supplied by the Auction company regarding details of anything that would need to be paid by the buyer at closing. Not typical, but on occasion this can be the case.

Thank you,
Mark S.
Customer Support Team