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Updated over 2 years ago on . Most recent reply

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Gunner Glenn
  • Rental Property Investor
  • Starkville MS
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Foreclosure with medicaid lien

Gunner Glenn
  • Rental Property Investor
  • Starkville MS
Posted

Hello,

I'm looking into purchasing a foreclosure at auction(Alabama) that was foreclosed by the mortgage lender, however, this property also has a Medicaid Lien on it. Does anyone know if I would be liable for this lien since I'm not affiliated with the previous home owner? I've done a lot of research online but have been unable to find a clear answer. Medicaid liens don't have a set amount due to them being ongoing expenses. I've read that Medicaid liens are considered "unsecured" liens so maybe this will help. I don't want to get the property at auction and then end up owing a lot more to Medicaid. I know some of these rules may vary by state, but hoping someone has experience with this. 

Thanks

Most Popular Reply

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Chad U.
  • Investor
  • Boca Raton, FL
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Chad U.
  • Investor
  • Boca Raton, FL
Replied

I've had a couple loans we foreclosed where there were medicaid liens.  The lien gets wiped as long as it was recorded after the lien foreclosing.

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