A winning bidder who takes title at auction is not financially liable for any prior mortgages taken out on the property. Depending on the position of the junior mortgages the association foreclosure can be redone by the winning bidder to foreclose those out. Any prior first position mortgages would have to be resolved and satisfied in order to have sellable or clear title. A non title holder is never entitled to surplus if they were not the owner at the time of the lis pendens. They could ...