Re:DSHS Lien on Foreclosure

[map5040]

Originally Posted by map5040
Washington State. I am looking to bid on a house at a forclosure sale. the mortgage holder is the USDA Rural Development. They have hired a trustee services corporation to handle the sale. The USDA has a minumum bid of $40K. But the DSHS has a $20K lien. Both liens show up on a tittle search. My question is, will the DSHS lien be released upon sale, or will the winning bidder be responsible for payment?

Thanks,
Mike


My response:

You will be responsible for all liens. You buy the property with "all faults".

IAAL

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I am still unclear on the status of any liens upon the completion of the foreclosure sale because the “notice of trustee sale” states that . . . “The effect of the sale will be to deprive the Grantor and all those who hold by, through or under the Grantor of all of their interest in the above described property.” Does this mean both liens will be satisfied in the sale? The trustee company has not provided an opening bid amount yet.

Thanks.