Buying a foreclosed house: is it clear of any liens?

[Hassan Tirmizi]

thinking of buying property through the court house auction but I want to know if I am still held liable for any outstanding liens (2nd mortgage , contractors....etc) after I have the winning bid

[Jesse Rivera]

Each state is different, so you need to talk to someone that has knowledge in the state you are buying in. Subordinate liens usually are gone, but property taxes, an IRS liens will stay. In some states, HOA liens stay, and so do municipality liens. And contractors liens stay, only if they are superior to the mortgage that is foreclosing.

In Oregon, we have a program where senior citizens can defer paying property taxes, but need to be paid back at a sale. That can be a big surprise if you don't see it coming.

Buying at auction is serious business, only do it if you know what you are doing.