Could Sherriff sale deed survive after bank foreclosure (Texas)

[Chad Coleman]

I found a property is about to be foreclosed on by the bank (1st mortgage). Looking up the history and found that the property was sold approximately 1.5 years ago in the sheriff's sale due to HOA payment default and has a sheriff's deed. First question here is, could the sheriff's deed survive the foreclosure sale (at the county steps)

What is more interesting is that the new owner (who bought the house from the sheriff's sale) has a quit claim deed a few months after the sale was conducted from the previous owner (the one is about to be foreclosed on) Second question, what the quit claim deed is for? I would assume that the previous owner sold the house to the new owner but really confused here so if this is the case why the bank is still looking for to foreclose on the property? I don't see any release on the title research so I guess the loan was not cured. The property is located in Texas

Any thoughts would be appreciated.

[Bruce Lynn]

@Chad Coleman   Chances are they get wiped out at closing.

#1 Strategy is to live in the house until #1 forecloses....live for cheap perhaps...I've seen this happen....buy a $1000 HOA lien and live there until you get evicted by #1 Mortgage lien foreclosure.

#2 Strategy is to rent it month to month until #1 mortgage forecloses.

Trouble is you don't know when that will be.....could be next month or five years from now....

#3 Depending on the balance of #1, pay it off.....Maybe ARV is $300,000, they owe $100,000 and you buy the HOA lien for $1000. Probably few of those around, but possible and you end up with nice equity.

Honestly we don't see many HOA lien foreclosures though and if they aren't paying the HOA dues, the ones I've seen look like trash.