Legal Question in Real Estate Law in Arizona
foreclosure and multiple liens
If a property has multiple liens and the bank as senior lien moves towards foreclosure, what happens to the lens that are not satisfied through the auction? Do they expire? Stay on the title???
1 Answer from Attorneys
Re: foreclosure and multiple liens
Junior liens are wiped out at the sale. Junior lienholders have a right to reinstate before the sale, and initiate their own sale, adding the amounts they paid out, but they will have to pay back payments, trustee's fees and late charges on the loan. They do not have to pay off the entire loan. Or they can bid at the sale, like any member of the public.
See an attorney if you want to take action to protect your rights. This answer is general information, and cannot suffice in any particular case, which might have unique or distinguishing facts, and until all facts and documents are examined, it is impossible to give a full opinion.
Best regards.