Home association foreclosures

[Jeffrey Farkas]

When a condo is being foreclosed by a condo association (that has a second lien priority over the mortgage), bidders often bid to levels that assumes the mortgage will be repaid despite the fact that the mortgage never answered the complaint and the foreclosure order specifically states the sale is contingent on the first mortgage.

would someone please explain why the bidders assume the proceeds from winning bid at be applied to repay the mortgage?

For example, mortgage is $100k and delinquent condo fees are $10k, bidders pay $125k. Can you request the Court repay the mortgage company although it never answered the lawsuit?

Thx