The holder of a 2nd can still foreclose even if the borrower has gone thru BK successfully, since the debt is on the property. 

2) How do I know I am indeed registered as a lien holder ( I understand I need to get hold of the trust deed from the County Recorders' office.

@Nick ClurmanFor decades Cali has been the biggest money maker especially for SFRs buy and holders.

Not sure what you meant by return of principal in 12/24 months that may be through the investment pool, not likely as a note holder unless they are short fused deals. 

Although there may be other certificate holders/lien purchasers, sometimes they do not file for the deed/foreclose on the property prior to the statutory period/date, as required. 

This is not an auction for the lien, in NC you come away from an auction not as a lien holder but a property owner.The property is valued at say 250K, the junior lien bidding started at 100K and ended at 190K and to the best of my knowledge and for the sake of this question the outstanding balance on the senior lien is 50K.

Why dont you get him to sign for you to be the first holder .

But in your case, the daughter is Not on title, and as Rick H. says, "the title holder is not available to execute the deed transfer".  

I would agree with @Steve Babiak that the only way to avoid foreclosure is to pay.But, and this a very big caveat, I also agree that foreclosure can be used as a viable financial strategy dependent on multiple variables that the mortgage holder has taken into consideration. 

I got started in the real estate buy and hold forums once I am a buy an holder!