Need an expert advise on foreclosure

[Chris Little]

I am new to the forum, but found many helpful insights by reading your postings. I am looking to buy a property in the specific area in Phoenix (investment for first 5 years and primary residence after). Not many good options available there, but one came up as a foreclosure to be auctioned in Maricopa County Court house by Auction.com.

I am not an experience investor, and all the horrors stories about Auction.com made me uneasy. I have done some research on the property and outstanding debts. In addition to the 1st mortgage that been foreclosed by Trustee, it also has 2nd mortgage, a couple of HOA liens and few more medical and mechanical liens. Also, the owner had bankruptcy in 2017. If I decide to go with the auction, I will get a title inspection done and I am planning to budget my bid so I'll have some unforeseen future expenses, but I assume they should be under 20k or so.

My understanding is that if the property get foreclosed by the 1st mortgage, the 2nd mortgage and HOA liens will be dismissed/wiped out (it is in Arizona). Please confirm it is correct.

I also can consider to ask the Trustee if they are willing to do a pre-foreclosure on it. But, as I gathered, I'll be responsible for all outstanding debts in such scenario.

My main concern that the property is listed as Occupied. I don't really want to all possible hostility from the current owner after the foreclosure. So, I thought pre-foreclosure might be a better route.

Any advised from experienced investors will be really appreciated.