In fact, Lynn, like explained in your previous post, if a lien gets recorded after the foreclosure case has already been filed and the lender never amends the lawsuit to include that lienholder, then it isn’t covered by the foreclosure judgment. The court can only clear out the interests of parties who were actually named, so a later-recorded lien will usually survive the foreclosure sale.

In practice, that means whoever buys the property at auction takes it subject to that lien. Sometimes it’s something minor like a code enforcement or utility lien, but it could also be more significant. A title company will spot it right away, and the buyer (or the bank if it ends up with the property) will have to resolve it before clean title can be delivered to a future buyer.

It’s a good reminder why doing a thorough title search before bidding is so important.