Mortgage #1 VS Encumbrances

[Guilherme Dannemann]

I got a question about this title I requested. The 1 Mortgate is foreclosing and putting the property for action. But there’s an Encumbrances that was posted by TD Bank, by my research was either personal loan or business loan default. So in this case if you win the action on this property, you’ll have to take over the loan that in encumbrances by TD Bank or the amount of 121k?

I’m new to real estate, so trying to understand the system 🫡🫡