Does a lien on a foreclosure transfer to the new owner?


#1

I am think of purchasing a REO foreclosure, which has a $10K lien on the property from the County. The former property owner is named on the lien, but the Lien date is AFTER the foreclosure date. Would I be responsible to pay this lien should I become the new owner?


#2

In California, if you are purchasing at a Trustee Sale Auction, if the lien is recorded after the Deed of Trust going to sale, this county lien would be wiped out.
If you are purchasing from the Bank (REO), this transaction would then be handled as a traditional real estate sale and would be handled by a title company which would have title insurance that would protect you from this lien.