Foreclosure University Forum

Minnesota sheriff's sales

by RealEstateDump, Thursday, April 23, 2009, 19:56 (3741 days ago) @ Jewels28

If property is purchased at a sheriff's sale, is that property free of any other liens or charges other than the price paid>

Not necesarily.

Here is a post from a law firm I know here in Minnesota on this topic:

"Our law firm does a lot of foreclosure work. Here's an answer to your question, at least in Minnesota: Before our law firm begins a foreclosure we examine the title for liens senior to the mortgage being foreclosed because these will generally survive the foreclosure and remain a title problem down the road. Most lenders require a policy of mortgagee's title insurance, so when we do find a senior lien, we require that the title insurance company either obtain a satisfaction or give an indemntity before we begin foreclosure. State and federal tax liens are given notice of the foreclosure in the manner requird by the applicable laws and are eliminated unless they redeem (and they never do). Liens -- mortgages and judgements -- junior to the foreclosed mortgage are eliminated by the foreclosure unless the lien holder redeems within the statutorily specified time. Our clients expect that after we have completed a foreclosure we will have done so in such a way that the property can be resold; otherwise the exercise is pointless to them. So, while there is no substitute for your own policy of owner's title insurance, the odds are that buying a foreclosure property will give you good title."

James J. Pauly, Esq.
Reiter & Schiller

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Hope this helps


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