Can a Foreclosure Auction be for a non-first position Lien?

[Drew Mathews]

Hi All, I am curious about the technicalities of Foreclosure auctions. 

For example, is it possible that second position or third position liens are being auctioned but the First position mortgage isn't?

I understand the concept of checking for surviving liens such as Property Tax, but wanted to confirm that any foreclosure auction is for the First Position lien not any other lien and then our due diligence involves checking for other liens that may come due upon winning the auction.

Seems odd to me that you would see a $1,000 HOA foreclosure at auction but the mortgage isn't included that day, but want to confirm that can't happen.

Thank you again!

[Steve Morris]

I guess you could, but the 1st position guy has most at stake and needs to be satisfied before #2 gets $0.01.

So a junior debt holder going thru the trouble of foreclosure seems kind of poor investment for them.  They'd probably just record some kind of lien instead of a foreclosure?