If a property goes into foreclosure will a City Landscaping Lien have to be paid by new owner or bank?

I have a short sale getting ready for an approval and the 1st Lien Holder will not pay for a City Landscaping Violation Lien. They state that in the State of CA the Sr Lien Holder does not pay for non subordinate liens and it is not allowed. If the home goes into foreclosure, will this lien get wiped out, or does the bank or future owner need to pay that lien? Thanks in advance for some assistance. I'm trying to get facts to take back to the asset manager.

Posted by Cory Rangel
from CA




1 Answer

0
HI Corey, As you already know all liens must be paid when doing a short sale. If this property does go to trustee sale junior liens and loans are wiped out. Here is where it gets a little dicey and your title company should be able to help you. City and County liens can potentially be tacked on to the property taxes after a foreclosure. I am not certain that this is the case when it comes to City Landscaping liens. Ask your title officer if they would be willing to insure around this lien if the property went to trustee sale or if this is one of those liens that the City COULD push to be paid through the assessors office. This may be a stretch but certainly worth asking the question.

Answered by Michelle


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