Q: I bought a property through an auction that I now learned has a mortgage on it. What options do I have?
A: It depends on the type of auction. If it was a tax deed sale you take it clear and free of the mortgage, but there could be other liens that are not eliminated. If it was a foreclosure by a HOA or condo association, another lender with a lien, or a mechanic's lien, you take it subject to the mortgage. If the mortgage is not eliminated you would need to do what you did in the first place and hire a real estate lawyer to review the title (for other liens as well) and advise you if it is worth trying to keep the property, rent the property until the bank forecloses on it, or some other possible remedy.
Richard Paul Zaretsky agrees with this answer
A: If the sale was the foreclosure of a HOA or Condominium lien, first kick yourself to try to awake from a bad dream. Next see an attorney to determine if there is some problem with the auction such that maybe there is some way to get out of the transaction, or perhaps some other solution to keep the deal econimically feasible for you. If you did not yet pay the balance to the clerk, may want to consider whether to just lose your deposit,.
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