Legal Question in Construction Law in California

Does a foreclosure sale, on 90 day power of sale, (when bank takes house back and no third party buys it,) wipe out a mechanics lien for building material supplier, that was for supplies bought prior to bank taking back property? The lien was properly filed within 90 days from last day of supplies being delivered. Material supplier has not yet filed suit on owner but 90 days has not elapsed. The bank tried to sell house and the title co discovered lien but told supplier that it was wiped out by foreclosure. Is this true or are they just lying to fake him out?


Asked on 8/31/11, 8:27 am

1 Answer from Attorneys

Unless the materials on which the lien was based were provided to the work of improvement before the lender recorded the mortgage, the lien is like a second mortgage that gets wiped out by foreclosure of the senior lien. It's all a matter of priority in time of recording the lien. Only the government's liens survive foreclosure of a lien that recorded before the foreclosing lien.

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Answered on 8/31/11, 2:18 pm


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