does anyone know whether a lien placed by the city for relocation expenses is wiped out at the auction?
Good question. Some kinds of “government liens” are treated (at least by title companies) as tax liens and have priority. An example of this are, literally, garbage liens, that some cities, like Oakland, place upon the property for unpaid garbage bills.
I bought a property where the City of Okld. included an unpaid business tax fee (a few thousand) on the County tax bill. They removed it when I pointed out that the property went to fcl. sale before the tax bill was issued. (Sent them copy of Deed.) I assume that if that had happened the year before the sale, it would, of course have been on the tax bill and a matter of record when the property was bought.
Seems to me the lender sure would have a beef if it took the property back.
Bottom line: Ask your title company how they would treat such a lien. If it isn’t in the tax bill - I would argue it is like any other junior lien. What is a “relocation” lien? I know County Hospital liens are wiped.