@Ed B.They would receive the proceeds from the sale once the first mortgage is paid off, so it’s not like they would get nothing but it typically would not sell for full valueWhere the original poster could also be subject to a lawsuit is if they let it foreclose they may not have recorded this agreement which appears someone else has an equitable interestIt could get really dicey

While every effort has been made to ensure the accuracy and reliability of the information, the real estate market is subject to change due to various factors such as economic conditions, interest rates, and market demand.

We are not subject to a third-party audit.”There’s no telling what more the bank will ask for, so I’d be searching for another bank just in case. 

@Jared ZabawaResearch doing a subject-to transaction where you purchase the property 'subject to the existing loan.' 

BUYER MAY TAKE “SUBJECT TO” IF THEY ELECT TO DO SO.Government guaranteed rentwhich is exempt from rent control.35% Upside in the RentsNostalgicbuildingin great downtown Oakland area near Lake MerrittExistingCap9%,Market Cap14%ExistingCashonCash Return13.5%MarketCash on Cash Return25%Existing GrossRentMultiplier7.6MarketGross Rent Multiplier5.6HighgrowthcityandareainfluencinggreatappreciationpotentialNodeferredmaintenance-EasyManagementStrongRentUpside.TroublefreeincomeandmanagementOpportunity Zone

From what i understand from looking around is that when you purchase a HOA/COA lien at the auction its subject to the mortgage, or any other liens that has superiority to it. 

These are very subjective terms.  

I have an opportunity for a subject to deal in Washington state. 1 - What would be best way to hold title?

Combining primary mortgages (on a subject acquisition) with a fixed second mortgage (against another property) can reduce the loan to value (LTV) on the qualifying mortgage; which should provide lower interest rates and make the offer to purchase more competitive (since there is a larger down payment.) 

If you absolutely must listen to them, then a good rule of thumb would be to instantly put it out of your mind [and probably change the subject].