Are Department of Justice liens extinguished at foreclosure sale ?

[Martin M.]

If a DoJ lien is filed AFTER the foreclosing party’s lien – is the DoJ lien extinguished at the foreclosure sale (no longer attached to the property) ?

For example, foreclosing mortgage lender lien recorded in 2005 and DoJ lien recorded 2007.

If the answer is yes – is the DoJ redemption period 12 months from the date of the foreclosure sale?

Side note, I’m aware of the rules for IRS liens, e.g. they’re senior if recorded before foreclosing party and junior if recorded after, w/ 120 day redemption.

Thanks in advance to anyone that responds

[Sriv Nava]

1. Correct, the redemption period is one year from the date of sale (in NC this date is not the date of auction but end of the final upset bid period).
2. For reference Google "Title 28 U.S.C 2410"  which covers actions affecting property on which the United States has a lien
3. It's important to note that only judicial foreclosure sales will eliminate federal judgment liens (other than federal tax liens) in favor of the United States, subject to a right of redemption (1 year). Non-judicial foreclosures, like power of sale foreclosure in NC, will not eliminate federal judgment liens.
4. Non-judicial foreclosures involving junior federal tax liens are governed by another section of the US Code. Google "IRM 5.12.4 Judicial/Non-Judicial Foreclosures"