mechanic lien which was recorded prior to the purchase of the property


#1

I am trying to buy a house from auction. ?And doing my due?diligence. ?Does mechanic lien which was recorded before the purchase of the property matter when I buy from auction?


#2

Hi Sue,

Sean answered this question in an earlier response:

“My understanding is that “it depends”. Specifically I’ve been told that there is some case law that suggests that if the work was necessary to preserve the value of the home that there have been rulings that it benefited the lender and therefore is senior. On the other hand I’ve hear that things like swimming pools are not senior. My suggestion would be to find out what the work was for, and then ask the title company you plan to use when you resell the home. If you don’t plan to resell, you may have to buy him lunch. ;-)”