Asked in RepossessionMortgagesLiensBusiness Law
If you owe the IRS and several banks money and they have placed liens on your home and you sell it who gets their money first?
January 21, 2008 2:17AM
If you try and sell it, everyone will get paid before you can provide title over to the buyer.
The primary mortgage holder will get their money first. Then the liens, usually in the order they were placed on the property will get paid off. If there is anything left, you will receive the balance.
Put another way, you must pay off the liens to sell the property. It can be at the time of sale.
That's the point of the lien. They get paid before you.