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My wife and I bought a house at the sherrif’s auction January 2020 with a secured loan from the bank. We recieved the deed from the sherrif’s auction. We began to fix the house up. Consisting up tearing up flooring, replacing windows, painting the entire house, fixing walls and ceilings. When we went to get the abstract we found out there was a second lien on the property not disclosed when purchased at the auction. We got a lawyer and the lawyer attempted to contact the bank with the second lien. The bank could not find any loan for this property. A couple of months later we have a guy walk in the house to inspect and change the house locks. We continued to work on the house with the okay from the lawyer. Another notice was left on our house detailing it was empty. Our lawyer said to continue working on the house and it will just take time. This went on for an entire year. About last month we get notified from bank 2 that we either pay the second lien that is owed or they will take the house and put it back on the sheriff’s auction. The amount owed is around $114,000 not including the loan we already have of the house. Our options came down to paying bank 2 to go away or have the house taken. We attempted to negotiate and offered 50k. Bank 2 gave no response and told us they will be putting it in the auction soon. My wife and I decided to offer 100k and was turned down by bank 2. It was reported by our lawyer that bank 2 said they were going to be putting it on the auction again because they can get more money. Our options come down to continuing to negotiate with the bank in hopes they’ll go away or lose the house and continue to pay a house loan for no house. Our offer of 100k was already pushing it so at this point we’re out of options. My goal is to bring awareness and help other people not get in this same situation. I am currently working on a video that details all of this along with before and after pictures/videos of the house. Thank you for reading. Edit. Added one more sentence to the TLDR Edit2: this happend in Iowa,USA. My mother law in law took out the secured loan then it was going to be switched to my wife and I after we fix up the house. This “plan” was recommended to use by our bank who gave us the secured loan. Edit 3: currently at work but i’ll try and answer you guys as soon as I can and provide more info. Edit 4: I used the word “mortgage “ but it’s not. I’m not very knowledgeable in this area. To clarify my mil got a secured loan from the bank using her house as collateral as recommended by our bank. After we fixed the house some, the loan would then be transferred to my wife and I. We would then start a mortgage. Edit 5- anyone know a good place to upload our before and after video? Some expressed wanting to see it but I don’t believe I can include it in this sub. Edit 6- Some have pointed out Iowa does not have title insurance. My mil has looked into other real estate lawyers and has had no luck. TLDR: Bought a house on sheriff's auction that needed a lot of work. Worked on the house after we bought it. Found out months later there was a second lien. Bank will be taking our house due to failure to pay for second lien ($110,000+) from previous owners that was undisclosed when we bought it. We will have to continue paying for a mortgage for no house. DON'T SKIP OUT ON TITLE INSURANCE!