Texas Commercial Law Firm
Foreclosure
11. Property association liens. Title should also be reviewed to determine if property association liens, condominium maintenance liens or other similar liens may be superior to the deed of trust lien sought to be foreclosed. Such liens may be superior to a deed of trust lien in two ways: 1) the provisions of the property association are typically recorded of record at or near the time of commencement of construction of a subdivision or condominium as the case may be. Therefore, any deed of trust or other contractual lien filed thereafter will be inferior and subject to being cut off by foreclosure of the property association lien unless the provisions of the property association specifically subordinate their liens to those liens securing purchase money loans or unless there is a separate subordination agreement filed by the property association subordinating their lien to the lien of the deed of trust sought to be foreclosed.
12. RTC and FDIC liens. The Federal Deposit Insurance Corporation (the “FDIC”) and the Resolution Trust Corporation (the “RTC”) may be entitled to prior notice of an anticipated foreclosure sale depending upon their ownership or lien rights in the property to be foreclosed. Both the RTC and FDIC claim to have the right to require a mortgagee to obtain their consent prior to foreclosure of a lien against property to which they hold title.
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