Foreclosure Auctions: Preferential Liens
Foreclosure auctions can be a good opportunity to acquire a property at a lower price. However, it is important to know the encumbrances that exist in them to avoid problems. The encumbrances in an auction are divided into encumbrances prior to the executed debt, encumbrances subsequent to the executed debt, and preferred debts. Misreading the property's registry certificate or being unaware of these encumbrances will almost certainly result in a failed investment in the auction.