If a criminal judgement is filed against a property on 10/27/2011 for 170k, after the recording of the 1st place lien filed 3/30/10 for 380k, is the judgement, being junior to the 1st, wiped out upon sale of 1st at trustee auction?
Hi Joe,
Junior liens and loans are wiped out at trustee sale. This, of course, means that the junior lien is no longer secured by the property and does not prohibit that lien holder from going after the former owner. It simply becomes an unsecured lien.
In your case the foreclosing deed of trust was recorded in 2010 and the judgement recorded in 2011. This judgement would be wiped out at the foreclosure sale of the 2010 deed of trust.