In some states, an unpaid judgment lien may be wiped out by a foreclosure action. The current property owner is responsible for payment of the judgment before transferring title. Judgments are typically recorded with the clerk of the county in which the debtor’s property is located to ensure payment from the proceeds when the property is sold.

Judgments - This is a court order formalizing the amount of a property owner’s unpaid debt to a lender or a service provider, together with interest, legal fees and court costs. This type of easement usually expires when the property is sold. A property owner may also grant an easement to a third party for access through his land. Utility easements generally do not go away when the property is sold. Which liens should I look for?īelow are some types of liens you should watch out for when buying a foreclosure.Įasements - Utility companies frequently hold easement rights through a property (right to access another person’s land) for utility line construction and future access for maintenance purposes. Liens are typically recorded with the clerk of the county in which the property is located. What is a lien?Ī lien is any legal claim upon a property that reveals either a debt or a non-monetary interest in that property. It makes no difference whether you intend to purchase a home through conventional channels or bid on a foreclosed property at auction - it’s up to you or your representative to perform a thorough check of local municipal records for outstanding liens on the property.

Federal tax lien on foreclosed property