Second Deed of Trust on Auction Property?

[James Sutton]

Hello, I won a property at a trustee auction a week ago and have a 15k deposit down. After our title company did a search, they found an old mortgage note from 1975 as the first deed of trust and there is a 28k balance on the mortgage. 28k was the purchase price of the property back in 1975. The person who bought the house with a 28k mortgage sold the house in 1977 (or 2 years after initially buying the house).

The auction where we won the property is the second deed of trust.

By the second deed performing the trustee sale, what happens to the first deed of trust 28k note balance? Does it get wipped out or would it need to be satisfied? I can't believe this house would have a 1st deed of trust dating back to 1975, it was sold in 1977, sold in 1994, and national city mortgage is now the second deed of trust with full title insurance.

Any ideas? This is in VA Beach, VA.