Posted by Sue (NC) on September 29, 1999 at 09:18:35:
The bottom part is MOSTLY correct, at least in NC. The rest of my answer is also NC biased:
JUNIOR IRS LIENS carry the 120 day redemption- as long as the trustee has given the IRS ample notice. SENIOR IRS LIENS remain on the property. Improper notice to the IRS can also affect whether the lien is extinguished after 120 days.
City & county assements & taxes are superior to everything at least practically. There are some funny IRS rulings about who comes first between IRS & county, but trustees here typically sell SUBJECT TO outstanding taxes & assements anyway (in NC).
Junior non-IRS, non-city/county liens are gone. Some utilities which lend on HVAC equipment, etc. can reclaim their property here, separately from the home.
Most mortgages are timestamped to determine their natural order (unless subordination agreements are filed to change this). You will need to check your statutes to determine how non-mortgage liens are prioritised (date of first hearing? date order issued? date of writ of execution?)
Each state has different redemption periods for the owner foreclosed. You need to know what rights the owner has after the sale.
Get a copy of your state’s statutes. They can be hard to read at times, but force yourself. Hire a competent real estate attorney to explain what you don’t understand. If he has doubts, have him call the title insurer (in the end, your title insurer will decide what’s covered). NEVER SCRIMP ON THE TITLE INSURANCE.