Newsflash: Bidding on a foreclosure, need some help with disclosure term meanings.

We have been looking at a house to buy in mt. The house is a foreclosure and has been listed for several amounts before it was finally put into a price range that we can afford. We put a bid on it but then the bank decided to go to auction for the house. The Auction site has the terms as follows and if I’m reading right then it means that we will have to pay the senior mortgage?. The terms are as below any help explaining to me would be great.Buyer acknowledges and understands property has a senior mortgage held by (blank) and Escrow as trustee for for (blank) Inc. in the amount of $22,071.68. and which is recorded in the (blank) county records on 01/29/1997, at book 65 page 443. Buyer is purchasing the property “as is, where is” with all faults and encumbrances, and further agrees that title transferred by seller shall satisfy the requirements of “insurable title” found in section 5 of this contract for the sale of real estate at auction. Buyer accepts all responsibility for securing subsequent title insurance coverage or clearing said title issue, in accord with local custom, at buyers expense, and agrees to hold seller, (auction house name) and its agents harmless from any and all results therein, and accept title in its present condition. Buyer should seek the advice and opinions of professionals with expertise in relevent disciplines, at buyers expense to provide competent counsel and guidance regarding said title issue. Buyer agrees to hold (auction house name) and its agents harmless from any and all results therein. In the event a release on said mortgage has not been excuted, buyer agrees to accept all responsibility for securing said release and satisfaction. Buyer agrees to conduct their own due diligence on property and said regulations prior to bidding. Buyer shall be responsible for any and all remediation, if any is required. Buyer shall base their decisions on their independent inspections.



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