I have a lein on a house that is foreclosing will I recieve my lein?

Answer 1

At the end of the day probably not. I am assuming you are not the first lienholder and that an institutional lender has a sizeable lien on the property (otherwise, the property owner probably would not be in this position or allow themselves to be foreclosed).

The first payments from the proceed of the sale go towards the costs of holding the foreclosure sale. Then the first lienholder gets paid. This payment will include all late fees, interest, collection costs and attorneys' fees. Then the second lien holder (hopefully you) gets paid. Depending on the terms of the instrument evidencing the second lien, they may also get late payment penalties, collection costs, attorneys' fees, etc. Anything after that goes to the third lien holder, etc. until all liens are paid off. Any remainder after all liens are paid off gets paid to the owner of the property.

You may want to consider, depending on the size of your lien and the first lien, bidding at the foreclosure sale.

Answer 2

I would say you will not receive any monies against the lien on the house, because the first mortgage would get their money first, then any government liens, then so forth and so on, until they get them paid off. Next, would come your lien, which is so far down the totem pole. Sorry, but this is the way the system works.

Answer 3

The only liens that are not removed by Foreclosure are: Property Tax Liens, IRS Liens, Anti-Terrorism Liens and US Judgements.

If you're not one of those, you won't get paid.

Answer 4

probably depends on the state

Did you file a homestead?

Bankruptcy could be an option

Answer 5

What position are you in? If you are in 2nd I would say not. It really depends on the courts.

Answer 6

It's spelt LIEN

Answer 7

Probably not.