Purchasing at Auction in San Diego Ca

[Parker Cox]

So I am currently looking into purchasing my first home from Auction and I have no idea about how the process works other than you buy "as is" and must have cash for your bid. 

 But, this property seems like its the famous "too good to be true" scenario--worth nearly a million dollars but on auction for 450,000.  Then looking at the documents, it has two mortgage liens against the house 1 for 350,000 and one for 500,000 and I need to understand if I was to purchase the house for the auction price, would I be liable for one or both of these separate liens? as in, if I bought it, does that wipe out all existing debt against the mortgages?  There is also delinquent tax to the tune of about 10,000 that I would assume the next owner is responsible for?

But, another caveat, there was a first auction, and no one bid, obviously huge red flag, then they lowered the cost and are doing another auction.  So, it really feels like somebody knows something I don't.  But how do I find out if there is a major problem that I am missing through ignorance?

Anyone with a little insight into auction purchases, especially in Ca or San Diego CA would be greatly appreciated.