Special Warranty Deed

[Khanh Tran]

Hi,

Below is the situation:

1) Person A bought the property and use the property to open Home Equity loan.

2) Person A died and transfer the property to their family member.

3) Their family member then sold the property to the current owner by using Special Warrant Deed.

The Home Equity loan of Person A  is default, and the bank is decided to foreclose on the property. What will happened to the current owner and the highest bidder of the foreclosed? Does the current owner lose the property and the highest bidder get the property?

Thanks