If the house has been Forclosed, then it no longer has 2 mortgages. In a lot of States, Tax Liens do not stay with the property, they belong to last owner, (unfortunately, the losing homeowner gets screwed again.) With the numbers you gave us, I would bet that the house will sell in a few months for $350-$400. A good Title Company will be able to tell you if there are any liens attached as soon as they are recorded. Now, how attractive is it?