Reply #8: In Pennsylvania foreclosure EXTINGUISH such liens.

[happyslug]

Pennsylvania follows the rule that the Mortgage company is a "Owner" of the property. This is called a legal fiction. The key to this when a real property is foreclosed on, the mortgage company gets a clean title for having purchased the property AT THE TIME THE MORTGAGE WAS ENTERED INTO. Under this "legal fiction" any subsequent lien is from the home owner, whose right to own the property was extinguished by the foreclosure, ends with the Foreclosure. An exceptions is made for Tax liens, but not judgment liens. I have had mortgage companies refuse to accept a deed in lieu of Foreclosure on the grounds they wanted any subsequent liens on the property extinguished and that can only happen at a Sheriff Sale of the Property.

As I said this is under the "Legal Fiction" that the Mortgage holder is the legal owner of the property from the time the mortgage was entered into by the homeowner ONCE THE HOUSE IS SOLD AT EXECUTION SALE. This rule varies from State to State.