Be Creative,,,can you make this deal work?

[Jaago Viitkin]

creative investing, think outside the box, foreclosure puzzle, can this deal work, solve problems?

I ran into a beautiful lake house in Florida. 

A broker is selling the house and saying HOA has quick claim deed on the house.

I ran a title search and it came back with 2 mortgages on the house (First position 300k and second position 75k. Current balance is unknown). My title guy said the HOA foreclosed, but the 2 leans are still active. First position mortgage lender started a foreclosing in 2008, but never finished (reason unknown).

My question is how can HOA sell it, if the leans are still there? If new owner buys the house and first position closes then house is taken back, second and new owner are wiped out.

I want to buy the house for my next rehab? Can this problem be solved some how?

Thank you 

[Andrew Syrios]

If you foreclose on a property in an inferior position (2nd, 3rd loan or HOA lien, etc.) the liens in front of you are not wiped out but instead stay on the property. However, if they sell the property, they would have to pay off (or come to an agreement with the remaining lienholders) the loans still in place. At least, that's how it works in every state I'm aware of.