Legal Effect of Foreclosure

The purchaser at a foreclosure sale takes the mortgagor's title divested of all incumbrances made since the creation of the power.  Hampshire v. Greeves, 104 Tex. 620, 143 S.W. 147.

By the sale under the power in a deed of trust, subsequent lienholders were foreclosed as effectively as a foreclosure by judgment in a suit to which all claimants were parties and in pursuance to such judgment a sale had been regularly made.  National Western Life Insurance Company v. Acreman,  415 S.W.2d 265 (Tex.Sup. 1968).

Following foreclosure sale of a senior lien, junior liens are extinguished.  Diversified Mortgage Investors v. Lloyd D. Blaylock Gen. Contractor, Inc., 576 S.W.2d 794, 808 (Tex.1978); Mortgage & Trust, Inc. v. Bonner & Co., 572 S.W.2d 344 (Tex.Civ.App. - Corpus Christi, writ ref'd n.r.e.); Arnold v. Eaton, 910 S.W.2d 181 (Tex.App. - Eastland 1995, no writ).