In an attempt to limit the spread of the coronavirus, New York City’s Governor Cuomo issued an executive order, “New York State on PAUSE.” All non-essential businesses suspended in-office personnel functions, and tolling filing until April 19, 2020. This prevents the property owner from selling the property or borrowing extra money against the property without resolving the underlying claim. Properly placed, filed, and served mechanic’s liens stay with property no matter who owns the property later. Debtor’s property will be auctioned to pay the contractors. Contractors may go to court and get a judgment against a debtor who doesn’t pay them. Several service providers have the choice to execute a lien to secure payment. Mechanic’s liens are legal documents that reserve the rights of filers to recover unpaid compensation. Failure to pay mortgages results in the bank exercising its right to seize and sell homes to collect an outstanding debt.

Mortgage liens exist when the bank places a lien on homes until the mortgage is paid. Mortgage LienĪ mortgage lien is a legal right to seize and sell assets subject to an unpaid mortgage obligation. The type of lien determines how liens are distributed after foreclosure. When considering “does foreclosure clear all liens?”, first know what type of liens the property is subject to. The loan and creditor’s rights to your assets are released once the loan is repaid. A creditor holding a lien to your loan may seize assets subject to the lien. Liens ensure their principal obligation is satisfied, such as the repayment of a loan. Creditor agreements and legal judgments create liens.

Federal tax lien on foreclosed property