If my house is foreclosed on and sold at a sheriff sale what happens to the liens against the house?

Answer 1

That is determined by state law.

In general, in states that allow trustee sales (non judicial foreclosure) defeciency judgements are not allowed unless the lender elects judicial foreclosure instead of a sale of the property by the trustee.

Essentially you do not owe anything if the lender elects a trustee sale.

In the states that require judicial foreclosure the lender can get a deficiency judgment against you.

The trustee sale is a much faster and simpler procedure for the lender. The benefit to you is that you do not owe a deficiency judgement.

The judicial foreclosure is a much more time consuming procedure for the lender which is a benefit to you because you can stay in your house longer.

The disadvantge to you of judicial foreclosure is that the lender can get a deficiency judgment against you.

Answer 2

I would expect the liens against the property to go with the property. But I would expect you to still be liable for the underlying reasons for the liens. Don't think the lien on the property absolves you or the responsibility to pay. Would be a good question for a good attorney.

Answer 3

The revenue from the auction goes to pay against the lien. Whatever difference there is between the auction price, and the mortage, you owe. Most likely the bank will sue you for that difference plus lawyer fees. This is why declaring bankruptcy has been so popular as of late..

Answer 4

Paid in order
First mortgage
Second mortgage
Third mortgage
First lien
Second lien
Third lien
Until the proceeds or the liens run out and then you owe or get the difference.

Answer 5

Froeclosure cancels all leases and contracts. The financial enterprise owns the residing house and needs you out. It sucks, yet it quite is the way it is going. You have been served a be conscious to give up. in case you fail to vacate in line with the understanding the financial enterprise will report an eviction against you. you will possibly no longer ought to pass ideal away, as judges tend to furnish tenants time to locate yet another place. you will ought to respond to the summons and grievance while that's served. you will ought to bypass to court docket in the different case the financial enterprise gets a default eviction judgment against you and a sheriff will set you out. The decide will probably supply you a "stay" - time to locate yet another place. you will ought to pay hire (use and occupancy) for the period of the "stay". you will finally end up with an eviction judgment against you.

Answer 6

You are still responsible for the differrence on what you own and how much did the house sold for. You still pay the difference