trustee pulling a fast one?

I am following a house I want to buy at a trustee auction. The preliminary title report says Washington Mutual has a deed of trust, secured by the property, owing $500,000. The same bank has a second loan for $250,000, which says “THE ABOVE DEED OF TRUST ?SECURES AN EQUITY LINE OR OTHER REVOLVING LINE OF CREDIT”.?

The trustee posted a minimum bid amount of $750,000. Isn’t the line of credit loan supposed to be wiped out by the auction? Trustee won’t discuss it.

Sounds fine to me. ?Lender on second can bid in what is owed on second. ?You are right, technically the 2nd should give the Trustee enough to cover their loan - but since the lst holder, 2nd holder and trustee are all the same - it would be like taking money out of one pocket and just shifting it from pocket to pocket. ?Who is damaged?