Under North Carolina foreclosure laws, are mechanics liens lost if the house is taken via foreclosure?

Mechanics liens are lost if the house it taken through foreclosure. That's because the mortgage and trust deed are recorded as a lien before the mechanics lien is recorded. Even if a house is free and clear of all morgage liens and all other liens at the time that the mechanics lien was recorded, and later the homeowner applies for a mortgage loan, the lender would search the property records, would find the recorded mechanics lien, would insist that the mechanics lien be cleared before the loan is approved, and then would quickly record the mortgage note and trust deed while the property is free of all other liens. Therefore, all mortgage liens are first in time recorded compared to mechanics liens.

This answer must not be relied on as legal advice for the reasons posted here: http://mcgyverdisclaimer.blogspot.com . And I am not your attorney.

David