property deeded to another - is this an auction risk?

I noticed that borrowers are not the same as owners. Looking at some of them, I noticed they deed the property to someone else while the loan is still under their name. Can this pose a big risk for auction buyers?

No, I don’t think so. The trustee’s sale effectively wipes out transactions since the date the deed of trust (mortgage) was originally recorded - including the transfer to the new “owner”.

I agree, but can anybody refer me do the section of the law that confirms this?