Did this flipper buy a secondary loan?

[Konrad R.]

I was looking at foreclosure auctions and noticed a house up for auction. It looks like the foreclosure is for the primary loan. I did some research and it was in foreclosure last year, but it may have been for an equity loan.

A certificate of title was issued and he completely remodeled the house. It is currently up for sale.

I'm assuming the flipper will lose everything if the auction goes through (house and rehab costs).

Is this a plausible scenario? Would the county still issue a certificate of title on a secondary loan with the primary loan not being notified?

[Konrad R.]

It appears that the heirs of the property will benefit the most. The remaining balance after the judgment was satisfied for the second mortgage was sent to them. I'm assuming they will be sent a check for the first mortgage as well. Both bids came in higher than the final judgments for the foreclosure cases.

The second highest bidder on the second mortgage auction owns a duplex down the street from one of my rental properties. I thought he was experienced with foreclosures. He owns around 11 or more properties. I bet he doesn't even realize he dodged a bullet on that one.