I tend to agree... this question is odd.  It just doesn't seem likely to happen in real life.  But, there is no mention of title insurance in the question and we do not know that the lien was "missed."  It appears that the foreclosing attorney just chose not to join the senior mortgage, and instead hold the sale subject to bank's mortgage.

I'm not sure what the local rules regarding foreclosures are.  I always assumed that ALL parties with an interest were required to be served with notice, in which case, we would expect cyclist would file an answer and claim his interest and that he would be paid first.

But, apparently, for bar exam purposes... I am not supposed to assume all of these facts.  Simply put, they want us to figure out the cyclist was not jonied and his lien will survive the sale.

Best,
Robert A. Franco
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