we have a lien on a property

But a nursing home put a lien on the property a few days before we placed our lien on the property. The nursing home then sold the unit by silent auction.
I understand that no one can get a clear title until our lien has been satisfied.
We sent a bill which included all the unpaid assesments to the nursing home. The adminsitrator of the nursing home called us and said they are not responsible for any bills before they took control of the property.

My question is in your opinion should the nursing home pay the back fees or should the owner who won the unit in silent auction pay the unpaid fees?

We are a 43 unit condomium for seniors in NE.

Bonnie

Generally liens are settled in the order they were filed (Senior being the first lien filed, others are Junior Liens and importance in the order they are filed). Liens can be cleared in a foreclosure without all lien holders being paid.

Typical. First lien (Senior) is from the mortgage holder and let us say it is $200K. Second lien holder (1st Junior) was from a refinance (2nd mortgage holder) and it is $40K. Third lien holder (2nd Junior) is from an HOA for $10K past dues, assessments, etc.

OK, with me so far? If not, please reread.

Now a foreclosure is begun (it can be from any lien holder even the Junior lien holder like the HOA). Now let us assume the foreclosure goes through and the property is sold for $210K and to whom it is sold to is of no interest. The $210K from the sale is of interest.

The first lien holder gets $200K (what they are owed) of the $210K no matter who started the foreclosure. The 2nd lien holder gets $10K of what they are owed ($30K less then what they are owed). The third lien holder (the HOA) gets squat (zero) of what they are owed.

The foreclosure removes all liens (paid or not) and the title is now lien free (clean).

Now the foreclosure lien removals do not "free" the debtor (the one who owes) from the debt. This is where many get confused. Foreclosure does remove the liens but anyone still owed money (the 2nd mortgage for $30K unpaid and the HOA for $10k unpaid as examples) can legally go after the debtor. How to and if it is worth going after the debtor are other subjects.

Hope this helps.