Are judgment liens released from title after foreclosure sale and sheriffs deed is issued?

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Are judgment liens released from title after foreclosure sale and sheriffs deed is issued?

Im looking into buying a property at auction in
council bluffs, ia. It appears there are 2 judgement
liens on the title in addition to the primary mortgage.
Are these liens removed from the title when the
house sells at auction?

Asked on August 13, 2019 under Real Estate Law, Nebraska

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

Assuming that the mortgage predates (was recorded before) the judment liens, then the foreclosure sale wipes out the liens. If the foreclosure sale produces surplus funds (more than is required to pay off the mortgage and pay the costs of the sale), those surplus funds go to pay off the liens (before the former owner gets any surplus), but anything not paid off during the foreclosure process if simply eliminated, because older liens or securty interests, like a purchase money or first mortgage, wipe out later liens when foreclosed upon.


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