Which liens survive a Florida foreclosure sale 

• Survives

  A mortgage senior to the one being foreclosed

  You take the property subject to it

  Only the foreclosed lien and the interests junior to it are cut off. A first mortgage is untouched by the foreclosure of a second.

• Wiped out

  A mortgage junior to the one being foreclosed

  Removed, if the holder was named and served

  The lawsuit has to name the junior lienholder. A junior lien whose holder was left out of the case is not cut off by the sale.

  Fla. Stat. §45.031

• Survives

  Unpaid property taxes and tax certificates

  You pay them

  Property taxes are a superior lien. They stay with the property, and an outstanding tax certificate can lead to a tax deed sale later.

  Fla. Stat. ch. 197

• Depends

  HOA or condominium assessments

  Usually you pay, and the amount can be large

  A buyer at a foreclosure sale is jointly liable with the previous owner for unpaid assessments. The statutory limit on a first mortgagee's liability does not protect a third-party bidder. Get an estoppel figure before you bid.

  Fla. Stat. §720.3085, §718.116

• Survives

  The first mortgage, when the association is foreclosing

  This is the expensive mistake

  An association foreclosing its own lien cannot wipe out a first mortgage recorded before it. Winning a $10,000 association sale can leave you owning a house with a $280,000 mortgage still attached.

• Depends

  Code enforcement and municipal liens

  Often survives; assume it does

  Treatment varies with the type of lien, when it was recorded, and the municipality. Many never appear in the official records at all, which is why a separate municipal lien search matters.

• Depends

  A federal tax lien (IRS)

  Cut off if the United States was named, but with a catch

  When the federal government is properly joined, its lien is removed by the sale. The IRS then has 120 days to redeem the property by paying you. Plan your rehab spending around that window.

  26 U.S.C. §7425

• Wiped out

  Judgment liens against the former owner

  Removed if named, otherwise not

  A recorded judgment junior to the foreclosed mortgage is cut off when its holder is a defendant. Check the docket against the recorded judgments.

• Depends

  Municipal utility balances

  Varies by city

  Some utilities refuse new service until an old balance is cleared, which makes it your problem whether or not it is technically a lien.

The check we run before every bid

1. 1Read the final judgment firstFind out who is foreclosing. A first mortgage, a second mortgage and an HOA lien give you three different outcomes for the same house.
2. 2Search official records for anything seniorEvery mortgage or lien recorded before the one being foreclosed stays on the property after you buy it.
3. 3Confirm every junior lienholder was named and servedA junior lien that was left out of the lawsuit is not wiped out. Compare the defendants list with the recorded liens.
4. 4Pull the tax collector's recordUnpaid property taxes and outstanding tax certificates survive the sale and come out of your pocket.
5. 5Order a municipal lien searchCode enforcement fines, utility balances and open permits often do not appear in the official records at all.
6. 6Get the association ledgerIn an HOA or condo, the buyer at the sale is liable for the unpaid assessments. Ask for an estoppel figure before you bid.
7. 7Look for a federal tax lienIf the IRS was a defendant, it has 120 days after the sale to redeem the property. Plan your rehab spending around that.
8. 8Drive by, the day beforeOccupied or vacant, roof, windows, water line on the wall. It is the only inspection you will get.
9. 9Check the docket the morning of the saleBankruptcies, payoffs and motions to cancel land at the last minute. Confirm the sale is still on before money moves.

Education, not legal advice. Lien priority turns on the specific records in a specific case. Have a Florida attorney or title company review a property before you commit money to it.