My daughter has one semester left before graduating college at the University of Arkansas.I spent much of my time raising my daughter because of my flexible schedule including softball, gymnastics, junior and high school band, daycare place, and piano lessons just to name a few. 

Mom and dad are probably footing Junior's bills and will be more likely to pay up to avoid a hit on their credit.

Generally, any junior mtgs (recorded after the one foreclosing was recorded) get wiped out.

I swear at times I feel like I'm in junior high school.

Wouldn't the junior lien holder also have this same option? 

@Tom Gimer  if the bid increase it goes to the owner of the property or next in line if their are junior liens bank cant keep anymore than what they are owed..

When getting a HELoan or HELOC, you are putting your house up as collateral should you default and that lender takes a junior lien position to your current mortgage and property taxes.

they will call threaten beat their chest but you buy at trustee sale and you don't owe them. they are not super liens like other states were utls can survive.only thing that survives a west coast foreclosure is IRS  and some senior deferral tax's and ad valorum. everything else junior to the DT or not recorded goes away.. 

OR convince the seller to take back a short term second mortgage (6-8 months) which is junior to your hard money.

this is a tough one.... one school of thought is take the 3 million do a 1031 and buy a property that you do not need partners for and call it a day.I have a property IN Ca  exact same price range  3 mil value I bought for 25k 25 years ago.. my inclination is to just get my cash and not take ANY risk to market... we buy development ground from owners to build our subdivisions I find it very difficult to talk owners into partnering.. simply for the reasons above.. end the day moving the money tax deferred and not being locked into partners and being junior to a HUGE amount of debt dissuades folks from this route.