The mortgage serves as a lien on the property. When the HOA forecloses on the property, the mortgage is still there. The HOA as the new owner of the property is responsible for paying the mortgage or they can lose the house in foreclosure.
If you buy theproperty at auction, you are still subject to the mortgage and any other unpaid liens on the property that were placed there ahead of the HOA lien.
You make money as an investor if there is any equity in the property over and above the existing liens.
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