Subject-to property now in foreclosure - opportunity?

[Jeremy Wells]

I found a condo that was sold by 'John' to 'Bob' in 1998. Bob bought the condo subject-to the existing financing. The loan is still in John's name, deed is now in Bob's name. Bob also took out a HELOC on the property in 2002. Now the 1st loan is in foreclosure with the auction in about three months.

Nothing was mailed to John; all notices were mailed to the subject property. I found current contact info for John. The warranty deed says "[Bob] agrees to assume and pay deed of trust dated..." Bob broke that agreement. Does John have any way to take back the property?

Is there any opportunity here for an investor? The condo is worth about $180k as-is and the balance on John's loan is about $100k (about 50% ARV). And if John could get the property back and bring his loan current and sell it to an investor, what would happen to the HELOC on the property in Bob's name?