Where does HELOC stand in the order of lien priority?

[Matt James]

We bought a property through county auction. There was a HELOC mortgage put on the property years ago and the property has been transferred 3 times since that HELOC. Obviously our title search did not find it prior to us biding and winning it. Now I just felt it is a ticking bomb waiting down the road for me. This foreclosure was a HOA foreclosure and the primary loan mortgage already has a release on it. So there is a lot of surplus fund left after the HOA took only a small portion. The HELOC bank had never record any liens, lis pendens on the subsequent owners over the 16 years period after the HELOC mortgage recorded.

Can you please help analyze my situation. I was told the primary mortgage is considered superior lien and cannot file for surplus fund. Is HELOC mortgage considered the same and cannot file for the surplus fund? Should I notify the HELOC bank to ask them to go after the surplus fund from the auction? The auction just happened this week, so should have enough time?

I am also puzzled by why the bank did not do anything in the past 16 years. Could it be the original HELOC borrower secured the line of credit but never took the money?

Thank you in advance.