Judicial Forclosure: How Verify JR Lienholders Served

[Hanna Brown]

Question for all you foreclosure buyers out there: How do you conduct your due diligence to make sure all the junior lien holders have been properly notified/served in the case of a judicial foreclosure proceeding?

Apart from reading/verifying the defendants named on the the general judgement filed with the courts and recorded with the county, is there more investigating I should be doing to verify the defendants listed on the judgement were properly served? Is there any way to check what they were served?

Regarding due diligence with the owner, should I be checking newspapers to ensure that the owner has been properly notified?

[Ron S.]

Originally posted by @Account Closed:

Watch out for IRS liens in non-judicial foreclosures in states such as NC even if the IRS lien is Junior. 

"To the extent provided by state law, property is discharged from the tax lien when the holder of a superior encumbrance forecloses non-judicially under IRC 7425(b)(2) and properly notices the IRS"

The problem is finding out if the holder of a superior encumbrance has properly noticed the IRS.  I never had good luck with just calling them to send me the notices. I have to go through an attorney to do this..

 The IRS is never junior. Assuming proper notice to the federal taxing authority, they are always senior with right of first refusal that will expire in approx. 120 days if not exercised.