Is a HUD Partial Claim Mortgage forgiven in a sheriffs sale?

[Doug Kolt]

Hello Everyone! I'm looking at a property coming up soon for Sheriff's sale. The primary lender has foreclosed on the property and initiated the Sheriff's sale. Through a title search I found the previous (current?) owner took out a Partial Claim Mortgage through HUD in the amount $38,741 to be paid back once the primary mortgage is paid off. Both mortgages are in the previous owners name. I have called the primary lender, the main HUD office, the local HUD office, the Sheriff's department and auction website to find out if this loan is forgiven through the foreclosure or if the winning bidder will assume this loan and be expected to pay it. Each entity referred to one of the other entities. Nobody could give me an answer, HUD didn't even answer the phone. I don't want to bid on this property if I will have to assume this loan since it will eat the majority of any potential profits. Has anyone gone through this before? Anyone familiar with the situation? I appreciate any feedback you guys have. Thanks in advance!