Are utility bill liens wiped out if junior? (and info)

Hi, I have found several properties with “utility bill” liens filed after the NOD has been filed. Will these be wiped out, or will I be responsible for them if I purchase the property. Also, I want to thank you for all the great information!

Yep … if they’re recorded after the foreclosing DOT then these utility liens are junior and are wiped out from your (trustee sale buyer) POV. You would not be responsible for paying these back due bills.

Why are some still going to TDS auction long after they were deeded back to the bank/lender. The example I have is Radar id 982258b
It was deeded back to FNMA last year and there is now TSD auction date set for 8/16/11.

HI Rayaan,
This is a very interesting situation. We do show that the property did go to trustee sale and the trustees deed was recorded. Then a new Notice of Trustee Sale was filed setting a new sale date. The trustees deed to date has not been rescinded. It is possible that the trustee is preparing a rescission to be filed. This also happens to be an trustee sale. They are a relatively new player in the trustee sale business. normally sells REOs for bank lenders and does it thru a so-called “auction”. In the past they implied what they were doing was allowing people to bid at a “real” foreclosure sale. Of course that wasn’t true. In fact, if asked, they admitted ALL sales had minimum required bids that were much higher than their “opening” bid.
A couple people posted here that, recently, they are holding “real” Trustee sales.
Michele - Are they now acting as a real Trustee under a Deed of Trust in some cases? IOW, are they substituted in and noticing a “real” Trustee’s sale?

Hi Miketh, Yes, they are actually holding real trustee sales! As you know we have the regular trustee locations and in some counties you will now see a new location (which is typically a hotel room) where is holding trustee sales. As you know the folks that normally cry the sales are seasoned professionals in a well oiled trustee sale machine. The guys are new to this so they have had some challenges with postponements, opening bids, organizing the locations etc. Although they are releasing the opening bids on their site they are not necessarily the banks opening bid since we have seen the actual trustee report something different on the same TS#??? The trustee sales they are handling look like their REO sales with the large rented room and the guys in tuxedos but they are actually trustee sales and all of the rules regarding the trustee sales apply.