So I have seen attorney make big errors for sellers on commercial transactions where I represented the buyer before.Another thing is they are not clear on what they charge and who will be doing what (themselves as the senior attorney, the junior attorney, the paralegal)  on their team.I have attorneys state by state that I keep in my star folder in my database.

But in many states the HOA liens are junior to other mortgages.

I also connected with one junior broker in town focusing on poorer quality deals but otherwise nobody took me seriously. 

I would combine @John Rooster 's and @Wayne Brooks ' answers: It was probably a (very) junior lien that went back to the bank for costs.

You can order your own title search, which will turn up obvious problems like non names junior lien holders in the foreclosure suit, legal description errors, etc. before you enter into a contract, or during any inspection period if you have one.  

And like I said this is very common in tax sales.. but keep in mind tax sales while you might not get title insurance or the title insurer that will do these is a niche and its super weak insurance.. it does wipe out most of the junior liens.. so its a safer play.. the only ones that can snag it are long gone relatives who can make a claim. ( which this basically never happens)

Any thing else that you determine needs a grounded assessment for your project to be successful.Many companies utilize due diligence checklists prepared and updated over the time that they are working on project so that junior staff members can utilize these steps to prepare a complete and comprehensive due diligence report.

If the property was being foreclosed by the 1st lien holder then most of the junior liens will be wiped out.

Most defaulted tax foreclosures result in the elimination of junior liens, that is, property taxes are senior in claim and both voluntary liens like mortgages and trusts deeds (signed by record owners) and involuntary liens like judgments are wiped off title (but may, in fact remain as a debt of the foreclosed out former owner). 

So, they help each other out, the seniors help the juniors settle down.