Help with foreclosure auction / lien situation - im a newbie!

[Stacy C.]

Hello - quick intro, I've been taken to this site on many occasions when doing research and stuff, and now have a specific situation I'm hoping I can get some info / advice from someone with experience and knowledge. I'm looking to get into flipping or rentals, so will be here a lot to learn in the future.

However while looking I came across a property that I'm interested in myself to live in. It's up for foreclosure auction sale at the county sheriff auction.

I've done as much research as I could, so please correct me where I'm wrong. And I apologize ahead of time if this gets long winded, I really want to understand this and especially because I have great interest in making this property my home if it worked out.

The auction site showed a title report, showing a few mortgages and a lien from the IRS of 1.8 million!!! Its only a ~260k house) From what I can tell, the order of liens is whats important. The IRS lean is about somewhere in the middle. So I understand they have 120 days to claim/rebuy the property as a junior lien.

However in this situation, the foreclosed bank is the most recent mortgage. So this would make the first mortgage and the IRS senior to it.

So does that mean, anyone buying this at the auction will take on 1.8 million in IRS debt as well as whatever is left on the first mortgage?

Also - what if nobody buys it? (who would!!). My thought is that the only way this house would be available ever, is if the first bank foreclosed..that would wipe out everything beneath it.

But in this situation - what happens? Not even the foreclosing lender would want to buy it back, right? My thought was the original first bank may buy it, but just because they are the first one, doesnt mean it would wipe all the liens below, does it? They would still have to be the bank foreclosing?

Also one other question, I got confused looking at county records online. I saw several of the banks listed from the title report, but one for example would just show the grantor being the home owners, AND the bank, the grantee being another bank. Is this them getting another mortgage, or did they sell the current mortage off to another lender? I just want to make sure I interpret the records properly, and that there is in fact multiple mortgages on the home as I suspect, and not that those records are just showing that theres a new lender in place of the old?

Thanks for any info, much appreciated!!!!!!