I bid on a HOA Auction... Need some help!!

[Eduardo Guinard]

Ignorant me not knowing the foreclosure process bidded online $10,000 on a HOA Auction and won. I did a title search afterwards and found out two liens on the property, 1st lien for $124,000 and 2nd for $31,000. I also found out that the 1st lien holder had submitted a Lis Pendins last year. The property's assessed value is $32,000. My title agent suggested I contacted the bank to see if they will be willing to work out deal. At this point I am quite desperate and cannot imagine what could happen if the bank refuses to negotiate a discounted cash deal (sort of like a short sale). I could offer $22,000 cash to the bank which is all I got. I already accepted the idea that I just gave away $10,000 if the bank refuses to negotiate with me. Still Painful and costly to me.
Anybody with a similar experience? Any advice on how to approach the bank? I really appreciatte the help!! thx