Buying a Foreclosure, Foreclosed on Second Lien

[Kurt H.]

I have a property that I am interested in that has been foreclosed on the second lien.  The first lien has been on the property for ~25 years and is likely nearing payoff (assuming my amortization assumptions are correct).  The second lien is smaller, partially paid, but is already covered by the current price of the home at auction.

My questions are:

1) Are the leftover funs from the Junior Lien sale required to be paid towards the senior lien?

2) Can the senior lien holder refuse the "leftover" payment from the sale?

3) If an outstanding balance is remaining on the senior lien after a "leftover payment" from the junior lien, what are the steps to contacting and paying off the senior lien once I purchase the property at auction?  

4) Is it even a good idea to purchase properties in this situation?

Thanks in advance