do state income tax liens survive foreclosure

This type of foreclosure is referred to as a judicial foreclosure and is now common for residential loans in Oregon. Banks and other lenders typically use a trust deed.Ī trust deed can be foreclosed by a lawsuit in the circuit court of the county where the property is located.

Foreclosure procedures differ depending on the type of lien involved.Ī trust deed is a special type of mortgage given by the owner of the real property to a third party, called a trustee, who holds a power of sale for the property for the benefit of a creditor (such as a lender) until the debt is repaid. There are four common types of liens on real property: a trust deed, a mortgage, a land sale contract and an involuntary lien. For example, a carpenter can file a construction lien for work done on a house, the IRS can file a lien for unpaid taxes, and a creditor can file a lien for an unpaid judgment. In some cases, a lien can be placed on real property without the owner's consent where money is owed that has not been paid.

Typically, a homeowner gives a lien on his or her house to the bank as collateral for payment of a loan to the bank. An owner will normally give a lien upon his or her real property as collateral for repayment of a debt. After foreclosure, the person will no longer own the property and will be required to remove all his or her belongings and move.Ī foreclosure is started by a person, or company, holding a lien on real property.

A foreclosure is a procedure to remove a person's rights to own and have possession of real property, also referred to as real estate.

Do state income tax liens survive foreclosure