Courthouse Forclosure with First Mortgage Social Service Dept ??

[Edward R.]

I bought a house, great neighborhood, been watching it for over a year. Good bones to the place but needs typical all new everything inside, NOTHING on the outside. I bought it at the courthouse sale. Paid a little too much for what I had planned $10K difference) but that was the price and knew the upset bid and it's still 70%ARV value plus my work.

It has a SOCIAL SERVICES DEPT. First Mortgage on it.  taken out in 2010 face value $40,000 with $2,025 left on it.  The former owner at that time is the ex-wife of the new yet now Exhusband who had the house transferred to him sometime in later 2012 (lady was ill I guess. So that guy paid off the house and then a few years later took a $90K equity loan which he defaulted and then was foreclosed on.

So brings me to this, any way of negotiating a release of that $2,000 first lien/mortgage?  I guess it's not a creditor who has a lien so I may be SOL and that it's a Govt. Entity.  We bought knowing about it but wanted to see if anyone here has experience with that type of First Mortgage.  

My R.E. Attorney is a shark, one of the best reputations in my area.  He said probably nothing to be done but pay it but he'll look into making sure foreclosure notifications were proper. Just bought it and closing probably in 20 days.