Ok – I’ve been googling (always a dangerous move)… I think I’ve figured it out.
If the home forecloses – since the first mortgage (the one foreclosing) is first in line, all the other liens get wiped out for the next owner… But the creditors/judgment holders could still go after the current owner for the debts that created the liens in the first place. The soon to be former owner is not off the hook… just that the debt is no longer attached to the personal home.
In a short sale – any (or all) of the lien holders could refuse to cooperate – and kill the short sale. Since we’re talking about two separate absentee judgments and two separate state tax liens… I’m assuming the short sale is less than likely to go through.
