In a foreclosure, do I have to pay for any liens on the house?

A mortgage is just one kind of lien that may be placed on your property.  Other kinds of debts can also cause liens to be placed on the property.  Unpaid taxes may result in tax liens.  Work done on your house which goes unpaid for may result in mechanic’s liens, and the suppliers of materials used in your house obtain material men’s liens.  If you are sued over unsecured debts, like credit cards or medical bills, and judgment liens may be placed on your property.  Different states provide for a variety of kinds of liens, all of which represent debts that you owe.  State laws also prescribe priority to liens, determining which ones get paid first if all can’t be paid fully from sale proceeds.  For example, mortgages, which are secured by the property, get paid before unsecured debts.  Taxes usually come next, and so on.  In most foreclosure sales, proceeds are inadequate to pay secured liens, much less other, unsecured liens.  Money is applied to satisfy liens in order of their priority, until it runs out.  However, inadequate proceeds do not excuse you from liability on these debts, which remain owing by you even if they’re not satisfied from your foreclosure sale.

Talk to a Foreclosure Attorney to get legal advice and make sure you pay as little as legally possible. You may also want to consider options for keeping the house.