Owner did however clue me in that there was a junior mortgage for 80K.

(an important idea to understand as a junior lien holder) If a foreclosure only joins the mortgagor, then the rights of the junior liens were not extinguished, however in most cases, their junior lien holder does not 'improve' their rights.

You may need to have someone review the foreclosure to make sure all junior lien holders were properly foreclosed out.

Buyer agrees to use best efforts to pay off existing loans that are in sellers name within five years of close of escrow.)Protection for the sellerBuyer will execute a quitclaim deed back to the seller, which is held in escrow unrecordedHow to protect the buyer in the chain of title and potential future creditors of the seller.For the buyers protection a lien of some percentage (I like to see at least 20%) of the purchase price in favor of the buyer executed by the seller will be recorded a "Sellers Performance Deed of Trust" The buyer will appear to be a juniors lender for public record purposes.The seller is protectedFor the sellers protection a reconveyance of said deed shall be executed by the buyer, which would be recorded in the event of a default upon request of the seller, which remains uncured for sixty (60) days upon written notice of default, has been mailed to the buyerThis would allow the management company to unilaterally remove buyers cloud on the title by using the pre-signed reconveyance if the default was not cured as outlined.

The first forecloses on the property and because the second and third have similar sounding corporate names only notifies one of the junior mortgage holders.

If we did not go to junior high school together we are not working with you.

If you merge through lieu deed, you will loose all your foreclosure rights and junior lien holders will become senior to your ownership.It just seems the idea here is to hurry up and take title via DIL to get out from the speeding train wreck that this could become.

Once we actually had to call Mom and she was sufficiently embarrassed by junior that she started paying his rent directly to us.

I agree with @Junior Salters The numbers don't look like they work as they stand. 

Thanks @Junior Salters Thanks @Jason Shamis Thanks @Terry Evans yes, I've been working in architecture for about 12 years and I've been working on old buildings in Charleston for the past four.