Q: In a foreclosure auction, will the existing mortgage carry over or be effectively extinguished in the foreclosure sale?
Court records show that there's a final summary judgment which states that the plaintiff (the HOA), "holds a lien superior to any claim or estate of Defendants on the property". However, there's an existing mortgage in the form of a permanent loan modification agreement with the lender of record.
A: The mortgage is still there. A lot of people get burned in buying properties at foreclosure sales by buying the HOA lien out of foreclosure at a price very much below fair market value only to find a large mortgage on the property. Always do a title search to find mortgages and other liens that may have been missed by entity bringing foreclosure action.
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