Advice for a begging note investor, What am I Missing?

[Barry Clay]

Relative beginner here, I put an offer on a 2nd lien for 14K non performing note in Florida. The home is in foreclosure and the judge just granted the note holder a default judgment . The back taxes are 2k as the first lien. The note has a UPB of 32K and the property is worth 200k Seller is wiling to finance the note purchase. Im confused why note seller would be selling the note at this point before auction at such a deep discount. Am I missing something? shouldn't the foreclosure allow the note holder to recover cost and profit at auction or by ownership of the property?