Do mechanics liens get removed after the foreclosure sale?


Do mechanics liens get removed after the foreclosure sale?


Generally all liens that are junior to (dated after the loan in question? and no subordination) are wiped out at sale. Property taxes are always senior, and IRS liens have a 120 day right of redemption.
That said I’ve heard that there is some case law that says a mechancis lien may stand IF the work was necessary to protect the asset. I’d imagine this to mean repairs after a storm, or a water pipe breaking, and NOT something like new carpet.
USFN tends to be a great resource for keeping up to date on the latest legal issues around trustee sales. I’ve purchased some of the publications and guides and get their e-update which I find very useful on these topics.


Interesting. What is tracking mechanism for the “mechanics lien qualified repairs” to be recorded and later tracked?


They are recorded at the county recorders office. Right now there is no good source other than the county recorder or a title company to check for these. They are fairly rare - I’ve never had to pay one on my 150+ foreclosure purchases.