Los Angeles Auction question

[Roy Kwak]

Really interested in buying a specific house at auction and have zero experience with auctions.  I've been voraciously reading everything I can about the subject here on BP and elsewhere.

This house would actually be my primary residence so I don't have to get an amazing deal...just a discount to market based on the risk and enough to cover expenses of assumed repair.  The house is actually right around the corner from me in the Pasadena area and looks to be in relatively good condition (considering the old homes where I live) from the outside facade.  Here is what I know about it from Property Radar in round numbers.  

2005 original purchase loan for $800K (I think balance is now around $650K). 

2005 second loan at original purchase for $90K...looks like the buyer didn't have cash and had to go no money down.  

2006 another loan recorded in 2006 for $150K (possibly paid out the second 2005 loan??? not sure)

2010 third loan for $100K.

Property has $25K in back taxes

There is a 2013 lien against the property owner for $30K by Franchise Tax Board (FTB) of California (who we pay income tax to).

The first position loan is going up for auction in a couple weeks.

The second loan is reportedly in good standing (not sure why buyer would continue to pay just one loan)

A third position loan for $100K is going up for auction one day before the first position loan.

Place is owner occupied of course.

Place could probably sell for $900K to 1 million.

So here are my questions...and I REALLY appreciate any advice because I need a house to move into asap:

1)  Is the lien on owner recorded by the FTB of any concern if it is not for property taxes?

2)  Any reason to attend/bid on the 3rd position loan the day before the first position loan? Perhaps I'm mistaken but theoretically I could get the third position loan and then just take over payments for the 1st and 2nd correct? But with the 1st already in foreclosure wouldn't I just risk getting wiped out the next day.  Why is the third position loan even going to auction?

3)  Does the second position loan in good standing matter at all with regard to bidding on the first position loan?

4)  Finally, a really basic question but something I am confused about.  If the balance on the first loan is $600K and the house goes at auction for $1.1 million.  Does the $500K difference then flow down to property taxes, then 2nd loan, then 3rd loan in that order till everyone is paid out in full?  Therefore if third position loan balance is $100K and I bought it at auction for $25K then I would get a check for $100K assuming it sold at auction for that amount?  Hope that makes sense.

Thanks for the help everyone.