[WSBARP] Sheriff Sale Redemption and Publication Issue

[Bickel, Dwight]

Your client should expect title companies will show all prior liens unaffected by the foreclosure and sale. Title company practices are not perfectly based upon legal authority, but upon risk management.

Upon an owner redemption prior to a Sheriff's Deed, the title company practice is to show everything that was there before as continuing exceptions affecting the property, except the mortgage or judgment that led to the sale. The concept of junior to that foreclosed lien is not relevant because those other liens were not extinguished by a Sheriff's Deed. Junior liens can be extinguished if all those other liens were properly joined and the foreclosure was properly completed.

In response to a prior comment about junior judgments attaching but prior junior mortgages not re-attaching: First, all prior liens were not extinguished, so they remain perfected liens. Second, even if that Sheriff's Deed had been recorded, then the debtor purchased the land, arguably the prior mortgages do re-attach as liens on that land. It is standard for mortgages to include an "after-acquired title" provision, so when the debtor acquires title, those liens become enforceable for the unpaid debt.

From: Scott Hildebrand
Sent: Saturday, July 01, 2017 2:20 PM

Does my client redeem taking the property in exactly the same position had not the sheriff's sale occurred?

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