Loans and Leans and owed mortgage on a Forclosure

[Danielle Ross]

Hello,

I am new to BiggerPockets and I am trying to learn as much as I can about becoming a real estate investor. I have a a friend of the family who can fund the auction property and the rehabs for some property flips but when it comes to looking at the title searches I am still confused on what I am looking at. I found a property that is at auction next weeks built in 2014 4 bed 2 bath in a nice gated community. I know I have to check for back HOA fee's. My question is, why would the bank only be willing to do a max bid ob 8,535.12 when I see the home was purchased for 165,000 k and has comps sold in the same neighborhood this last week for around 179k. I ran some numbers and think I could bid up to around 96k and still get a very nice profit but something feels off. When I did the title search I see the original loan on the date of purchase for 165k but then I see another one dated March 2015 for 177k to the same parcel number. After viewing it I see that the owner in default signed some agreement to pay this loan. How do I know if the home has 2 loans on it? Also if it is in foreclosure and say I win the bid (in a perfect world) for 8,635.00 would I then also have to pay the back owed loans the original owner defaulted on? I guess I always thought that buying it at auction meant that those loans would not apply to me but I really want to be sure. One positive is I do not see any other types of leans on the property. Please help!!