Can a house that was supposedly bought at an auction for 5000 still be foreclosed on because the previous owner has an unpaid mortgage? My landlord says she bought a house at an auction But they just posted foreclosure papers on the door For the previous owner.
2 Answers from Attorneys
Yes a superior mortgage or an inferior mortgage which was not properly included in the first foreclosure can foreclose on their own.
Apparently, your LL did not obtain clear title.