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Do all junior liens and HOA liens get wiped out (except IRS liens and Property taxes) when you buy the property at the auction from the first lien holder?
(FL)

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tigris Posted: 4 Feb 2012 04:50 PM

Do all junior liens and HOA liens get wiped out (except IRS liens and Property taxes) when you buy the property at the auction from the first lien holder?

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jcone replied on 6 Feb 2012 01:31 PM
Generally speaking, yes, junior liens are extinguished when the lienholder in first position forecloses. The exceptions, as you stated, tax related liens. As for homeowner's association fees and assessments, I would suggest consulting either a local Realtor or real estate lawyer in the state you're interested in as different laws can apply from state to state. Remember, first and foremost, real estate is local.
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