Super Lien vs Junior Lien Priority

[Mark J.]

Hi-- I'm researching a foreclosure auction property. I'm still very much in the learning phase and have only bid on one property (didn't win it.)

If I won this auction, and say the price was $50K, would I also be responsible for the Junior Lien of $13k?

Many thank you's from the bottom of my newbie heart!

Mark...

[Account Closed]

@Wayne Brooks can probably help you out. I hate to stick my nose in a different state because the laws vary vastly from state to state. In general, when you win a bid on your super lien (here we refer to as 1st lien) the junior lien(s) get wipe off (not wipe out). All in all, you're not responsible for any liens recorded after the lien you bought. 

Example: You bought the 1st lien, you're not responsible for the 2nd and 3rd liens. If you bought the 2nd lien, you're responsible for the 1st lien, but not the 3rd lien. Whenever you're buying a junior lien, you're taking title subject to senior lien(s). Well, at least that's how it works in CA. 

Good luck.