HOA foreclosure auction, outstanding mortgage

[Julie Dausman]

I was following a foreclosure auction and I noticed that the plaintiff was a HOA. There appears to be an outstanding mortgage on the property. At the end of the Final Judgement there is a notice in bold and underlined print that says "If the property is sold at public auction there may be additional money from the sale after payment of persons who are entitled to be paid from the sale proceeds pursuant to this final judgement" A third party bidder was awarded the auction but doesn't the mortgage holder have first rights to this property? Won't the winning bidder just be out his money?