Posted on: 08th Feb, 2010 03:27 pm
If a home is foreclosed and there is a child support lien, does the lien have to be paid off before the foreclosure? This is a short sale so the bank is already loosing money. If the house is a short sale does the bank usually pay off the lien?
Hi Brian,
As far as I know, a child support lien is not a first priority lien. So, your mortgage lien will be paid first when the property is foreclosed and sold. If there is not enough equity in the property, the child support lien will not be paid off. Thus, in case of a short sale, it is unlikely that the child support lien will be paid from the proceeds of the sale.
As far as I know, a child support lien is not a first priority lien. So, your mortgage lien will be paid first when the property is foreclosed and sold. If there is not enough equity in the property, the child support lien will not be paid off. Thus, in case of a short sale, it is unlikely that the child support lien will be paid from the proceeds of the sale.