lien from HUD at the county foreclosure auction

[Jaz Patel]

If I am buying a house at the county foreclosure auction, the house has a first lien from a bank and second lien from HUD. If I win the auction, is the second lien gets wiped out or it remains and I have to pay for it since it is a government lien? For example if the first lien is 117k and the second lien is 35k. If I win the auction with 120k, do I still have to pay the 35k to HUD?

[Andrew Postell]

@Jaz Patel in general, the "foreclosure" auction will still mean you will be responsible for those liens.  But if it is a property tax foreclosure it's different.  Now this will absolutely differ from state to state and county but if you are in Texas (this is the Texas forum after all), if the property was foreclosed by the property taxes (not any other taxes like IRS taxes) then that will wipe the liens away.  Buying a property at an auction is serious business so MAKE SURE you know what you are doing if you attend.