Buy at Sheriff Auction question...

[Adam Dorn]

So, it is beneficial to let a home go to Sheriff Auction because the foreclosure process cleans out any liens, right?

What might be some remaining attachments to the title after foreclosure in NY?

Thanks again guys.

[Steve Babiak]

Originally posted by Mark Updegraff:

IRS leins are superior to all other. 90 day right of redeption applies.
Only those in subordinate positions are wiped out. You need to do a title search in order to make sure title is clear.

C'mon Mark Updegraff - you know better than that, that the IRS actually has 120 days right of redemption - you bought one with IRS lien as I recall.

And IRS lien is not "superior" in all areas; I would be surprised if it was considered superior in most places. IRS gets in line just like any other creditor in most places, meaning first in time to get recorded is first in line to get paid.

Mark is correct in saying that all liens that subordinate to the lien being foreclosed get extinguished. Title search will be used to establish ordering of lien priority, to determine what actually survives.

And in the end, each local area will have things that survive but don't survive everywhere. HOA liens are a good example of this; they survive in some places regardless of position, in other places the position of the HOA lien must be superior to the foreclosing lien in order to survive.

Try to get a better understanding of all this by reading through the FAQ:

http://www.biggerpockets.com/forums/41/topics/68977-foreclosure-auction-sheriff-sale-and-trustee-sale-faq