I notice a substantial number on HOA foreclosures have reverse mortgage liens. My understanding of reverse mortgages is limited. Does anyone have any tips to estimate the balance. For example I am looking at an auction that took place today. The HOA lien was 20K. The 3rd party winning bid was $120K and the market value looks to be about $250K. The mortgage dated 10/2006 has a face value of $337K. So are the winners idiots or geniuses because they figured out the correct balance somehow? If the balance is more than $100K it doesn't look like much of deal.