What happens when an AOAO buys back their foreclosure at auction for $1?

What happens when an AOAO buys back their foreclosure at the auction for like, $1, and it’s subject to $300K mort and only worth $250K? As I understand it the AOAO now owns the home (let’s assume no right of redemption, or that it isn’t exercised in 30 days). Does the AOAO now have to make those mort pymts? And if they don’t, won’t the mort co. foreclose on them?? Who gets stuck here? I’m confused!
Mahalo from Hawaii

What is an AOAO?

Sorry–it is the Association of Apartment Owners, and when an owner gets too far behind in their maintenance or association dues, the AOAO may initiate a foreclosure action on the property.

Not an expert on this matter but I doubt that a HOA foreclosure to recover unpaid dues is going to wipe out an existing first or second mortgage.

It depends on the laws in your state, but in MA, condo associations can jump ahead of the first and second mortgage but only by 6 months on a lien. Other states may not allow that. Anyway, it’s pointless for the association to buy it back for $1 because it typically will not wipe out the first and second mortgage holders. In a foreclosure, all liens after the current lienhold get wiped out if there’s not enough money. However all the ones before it are still intact. So in this case, they shouldn’t have wasted their time initiating the foreclosure because they don’t stand to gain anything from the sale and if the state doesn’t have any rules allowing the association to jump ahead of the other lien holders then they would get wiped out in the foreclosure. As the current owners, they’re supposed to make the payments, but it’s probably better for them not to pay as the first will initiate foreclosure and wipe out the second mortgage and all others behind them. Of course as the current owners, their credit rating may be damaged if they didn’t make payment. Also on a sale, most mortgages are not transferable so they’re supposed to be paid off on the sale. It’s a confusing situation that probably shouldn’t occur with proper legal counsel.