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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Cathartic effect of tax lien and trustee's sales... Posted by Ward-CA- on January 25, 2004 at 9:19 AM In Reply to: Judgements after tax sale and trustee's sale posted by Kristine-CA on January 22, 2004 at 12:55 AM : Greetings. I have a title question. When you buy at tax sale or at trustee's sale, are you purchasing subject to existing judgements against the owner. I realize that most liens get wiped out at these sales. But how do title companies deal with judgements against former owners? : I think I must be missing something here because I've bought and sold tax property and never once worried about this. But lately I've been dealing with lots of judgements against owners and heirs and the issue is definitely in my face. : Any ideas or experiences appreciated. Thank you. Sincerely, Kristine ========================= Kristine, The priority of a recorded judgment, like most other recorded liens, is established by when it was recorded. If it recorded later in time to a foreclosing trust deed then the judgment would be wiped off the title of the subject property. If the recording of the abstract of judgment was senior to the foreclosing trust deed then it would not be wiped off title by the junior trust deed’s foreclosure. It is wiped off rather than wiped out because the judgment would still exist and remain attached to other properties in the county that the judgment debtor might own. And even in the event the debtor didn’t own other properties in the county the judgment would remain viable in the public record and attach to any later acquired property by the judgment debtor. Property tax liens are the most senior encumbrance against title. Thus a tax lien sale will wipe off all other recorded liens, including any recorded judgment against the title of the affected property. Again I reiterate, it’s just wiped off the title of the auctioned property and thus will continue to exist either secured by other property in the debtor’s name, or remain unsecured until such time the debtor comes into title on some other property in the county. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Greetings. I have a title question. When you buy at tax sale or at trustee's sale, are you purchasing subject to existing judgements against the owner. I realize that most liens get wiped out at these sales. But how do title companies deal with judgements against former owners? : : I think I must be missing something here because I've bought and sold tax property and never once worried about this. But lately I've been dealing with lots of judgements against owners and heirs and the issue is definitely in my face. : : Any ideas or experiences appreciated. Thank you. Sincerely, Kristine : ========================= : Kristine, : The priority of a recorded judgment, like most other recorded liens, is established by when it was recorded. If it recorded later in time to a foreclosing trust deed then the judgment would be wiped off the title of the subject property. : If the recording of the abstract of judgment was senior to the foreclosing trust deed then it would not be wiped off title by the junior trust deed’s foreclosure. : It is wiped off rather than wiped out because the judgment would still exist and remain attached to other properties in the county that the judgment debtor might own. And even in the event the debtor didn’t own other properties in the county the judgment would remain viable in the public record and attach to any later acquired property by the judgment debtor. : Property tax liens are the most senior encumbrance against title. Thus a tax lien sale will wipe off all other recorded liens, including any recorded judgment against the title of the affected property. : Again I reiterate, it’s just wiped off the title of the auctioned property and thus will continue to exist either secured by other property in the debtor’s name, or remain unsecured until such time the debtor comes into title on some other property in the county. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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