Agreed, but are these liens supposed to be cured by the bank, or inherited by you?

Your question(s) concern the perspective of a junior lien holder as to how s/he is affected when senior mortgage goes to foreclosure sale.Generally, Junior lien holders are "wiped off" but the debt is not wiped out and remains, but unsecured.As a junior lien holder, remedies include:1) advancing funds to cure first mortgage in order to protect position;2) hoping for a forced sale that generates sufficient surplus (overbid) funds to pay junior debt;3) litigation to set aside sale due to claim of deficient noticing to junior bene (lien holder)Junior lien holders' claims for over bids are typically "pro-tanto" in nature, in that they are paid according to order of recordation, absent subordination agreement that would change order of lien position.If you are considering investing in junior trust deeds or mortgages, be sure to study title laws specific to the state(s) you are considering buying notes in.  

P:   ...but, I couldn't go anywhere, or do anything, and my "robbing from Peter to pay Paul" pain cures was making more pain in the end.D: So why are you here?

Thus, at closing the defects have been cured by the seller. 

In his contract, he may have provisions to cure this or to put back himself onto the maker.  

If he has a high paying job he should be able to cure any debt problems in a reasonable amount of time.

The cost to cure the 1972 home is a sufficiently large percentage of cost to build per square feet.

If there are no bids for any reason, the collateral is taken to cure that amount entered.

There is a reason properties don't sell, usually because they are not priced right in the first place, but they may also have issues, some are easily cured.

Cure in place lining.