Courthouse Steps Question

[Jason Green]

I found a house that is coming up for auction. The house is worth in the $450k range. When I look at the records, the only mortgage is for $87,000. The info on the filed mortgage matches the legal so its the first mortgage being auctioned. About a year later, there is a Judgment filed in favor of that mortgage company for $92,000. The only other liens on the property is property tax lien for $8200. I know that will have to be paid. On the surface this looks like a good opportunity. What other due diligence do I need to do so I am covering my rear. I hear these stories about unrecorded liens and what not but I don't know. I assume I would need to pay the money for a title search but anything else I might be missing? This deal has me spooked because it seems so odd to let a home get foreclosed on with 400k in equity. Don't know why they wouldn't just dump it if they were having financial trouble. Thanks in advance for the help as always.