Foreclosures Help Information

Posts Tagged ‘new foreclosure laws in california’

Foreclosure Laws In California

Question: california law re: foreclosures?

I am trying to locate the law that says if you get a house in foreclosure that all of the prior liens of record are wiped out by the foreclosure. That is true isnt it? I dont know about tax liens but regular liens are wiped out right? but i cant find the law to back me up. I know it is out there!

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Answer: Typically on a foreclosure, you get the right, title and interest of the lienholder. If the property tax lien has a "superpriority" it may have priority over earlier liens (not sure) but with tax liens, only the junior liens are wiped out. So if the house has a first and second deed of trust and a couple of judgment liens as well as the tax lien, which you have stepped into with the foreclosure, none of the earlier filed liens will be wiped out. The general rule with tax liens (other than property tax liens which have their own rules) is "First in time is first in right".

California Law for Loan Modifications Senate Bill 1137

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