In a short sale, if the foreclosing lender sells to you at a dicounted price do you still have to worry?

Question

about paying the second place lein holder/second mortgage? Would it just be better to wait till auction, where the second lein would be wiped out?

Answer 1

The first lienholder cannot sell the property to you without clearing the rights of the first lienholder. Assuming you are doing this in a conventional purchase fashion, you won't get title insurance until all liens are cleared and/or satisfied.