Buying 2nd position mortgage - at Auction

[Jonathan B.]

Hi Guys,

I have been buying and attending auctions for a while, 

there is a property i am doing my dd on that has a 2nd mortgage foreclosing on it, with 1st still current. 

I haven't attempted to buy a 2nd lien position before, trying to wrap my ahead around the strategy-

here is the deal i am looking at:

1st position lien: 

2004 balance of $36,000, to date - 1st hasn't issued any default notices so i am guessing it is current.

2nd position lien:

2007 balance of $35,000, Foreclosing lien @ Final judgement of $62,000.

there are no other superior liens such IRS etc..

ARV is about $150,000, so good equity if ill be able to buy below judgement.

I am assuming that buying the 2nd position loan will give me title the property subject to the 1st loan..

will i be able to directly negotiate a payoff with 1st lender ? 

what are the potential setbacks on buying 2nd position.

Thanks for insights.