Are Liens cleared at Auction?

[Javier Rosales]

Hello BP, I will be attending an auction on Friday. the home has two liens

Lien 1. 506,400

Lien 2. 63,300

the second lien is being Foreclosed on. Now "IF" I happen to be the winning bidder. do i get stuck with the first lien, or do all mortgage liens get cleared at sale?

any feed Back is greatly appreciated 

[Michael Hayworth]

A foreclosure auction, tax auction, or what? There are hardly any foreclosures happening right now, since anything with a federally guaranteed mortgage is under moratorium.

But to answer your general question assuming it's a foreclosure auction: while there are differences from state to state, there are no states in which foreclosing on a secondary lien cancels the primary lien. I have seen someone spend $60K cash on a property, thinking he was going to go flip a house, and then realize he was in 2nd position and would likely never see his money back. Buying at auction has all kinds of challenges, and I strongly recommend you go to a few and watch before you plunk down money.