You can not safely move forward if you are missing one or more of the three essencial numbers.

It is relativley simple, but it is a test for your resolve, as you have to first safe up some money.

Consider what returns you can get from other very safe (paying off existing debt you carry) investments or riskier investments (eg: stock market index funds), or what you can get from a different property.  

In Rev Proc 2000-37 a safe harbor reverse exchange was codified.I've got another 10,000 ft analysis of the reverse I'll send you to see if that clears things up. 

What could be risky of one operator could be safe for another...

@Christopher Coleman Run all the numbers in the calculator to be safe.

If this is a second mortgage, is it safe to assume that there is a first mortgage?

These products usually move a little more slowly than a fixed asset so they can be great fail safe identifications for a 45 day identification list.The biggest obstacles to these in general are unrealistic investor expectation of return in the wholely owned sector. 

Is it safe, sound secure etc?

As to HOA debts/liens when the bank buys it back at their own foreclosure auction.....the bank is protected by the Safe Harbor statute passed in 2008 I believe.....they owe only 1% of the original mtg or 12 mo.s of dues, whichever is less, and the HOA has to accept it as full payment.