Do banks settle on mortgages?

[Chad K.]

The home next to my friends home has been vacant for years so I did some research an saw that the home owners association currently owns the property. I did some more research on the property an saw that a bank still had a mortgage on the property. The home owner association told me they are interested in selling but I would have to figure out the loan/lein situation with the home. So I was wondering if there was a possibility of the bank settling the current mortgage owned on the property?