QUESTION
If I place a lien on property and the property is auctioned off, what happens to my lien?
Asked on Jul 15th, 2014 on Residential Real Estate - Virginia
More details to this question:
I went to court for a debt owed me. I was awarded judgement and field a lien on the property. All was recorded in Richmond Circuit Court. The property was foreclosed on and auctioned off. How could a clear title be granted with my lien on the property?
1 ANSWER
A foreclosure wipes out all liens on a particular parcel that are inferior (recorded after) the deed of trust under which the foreclosure occurred. Your lien will survive as to any other real property to which it attached. As your judgment lien was apparently recorded after the deed of trust, you only get paid if the sale generates funds in excess of the expenses of sale and the foreclosed debt...which happens but not too often.
Answered on Jul 15th, 2014 at 12:53 PM