Sheriff Sale - Property with lien

[Kyle Kursim]

Long time listener of the podcast, and finally ready to take the plunge. I have researched to the point where I have possibly confused myself further I'm afraid. I recently read an article talking about a potential bad deal that was avoided. A new investor attended a sheriff sale in hopes of buying a property, and at the auction nobody was bidding against this investor. Come to find out one of the other attendees saved this new investor from a nightmare being that there was a large first mortgage tied to the property. I believe the HOA was the plaintiff in this case.

In my case, the house that I want to purchase also has a lien/first mortgage from what I can tell (I researched the county recorder's records) to find the plaintiff's assignment that is taking this to auction. I've also ordered a title search which I will have shortly, but I believe I've found the lien and likely paid for a title search to tell me the same thing. 

The point of confusion for me is the stories I've read about liens causing nightmares. Is that the case because in the above example the HOA was the lien holder, but there was also a secondary concern of the first mortgage? I assume I will show up at this Sheriff sale and also be bidding against the primary mortgage holder. If this is the case, and I get the property for less than the balance of the primary mortgage am I going to be stuck paying it off? If so, then obviously I should walk away. If it's more of a settlement - they let this property go for less than is owed- then obviously there is a deal to be had.

Any help is appreciated, and I hope to someday share the same help with those in need. 

Thanks!