Subordinate HUD mortgage on foreclosure

[Jared Donboch]

Hello,

I understand that a 2nd mortgage is wiped from the title if the first lien holder forecloses on the property. In one of the properties that I would like to bid on at a foreclosure auction (in the county courthouse), the first mortgage holder is foreclosing but I see a subordinate mortgage on the property that was issued by HUD. I am not sure if that is a special case since the lien is technically owned by the US Government. This is not a tax lien, this is appears to be some sort of mortgage.

The encumbrances notes for the property is mentions it is "Pursuant to Section 2410(c), Title 28, United States Code, this property will be sold subject to the applicable right of redemption of the United States of America."  I attempted to read Title 28 of Section 2410(c) but the legalese is sort of confusing.

Anyone have any experience/advice on subordinate HUD loans? I'm assuming they are just like any other subordinate loan.