Will a foreclosure remove judgments and tax liens?

With both tax liens and a judgment already levied against your home, you clearly need to obtain the help of a highly competent foreclosure attorney. A tax lien foreclosure sale can become rather complicated. Homeowners need to do all they can to avoid falling behind in their property taxes to avoid such tax foreclosure liens.

When a house is sold in a foreclosure sale, the funds paid must first go to fully satisfy the terms of the mortgage. Next, all of the lien holders (and those who have a judgment levied against the home) must be paid.

Keep in mind that the person who bought the home cannot receive a valid title unless the mortgage holder stays involved throughout the sale. It is only after everyone else has received their funds that the mortgagor, the party losing their home, can be paid any amount.

Should the foreclosure sale not produce enough money to pay off the full amount due under the mortgage, the mortgage holder can pursue the mortgagor by obtaining a deficiency judgment against him.