" in that it said something about if he defaulted on the mortgage, I would have a chance to sell the property before the bank could foreclose"
You would have that whether you were still the owner, or a lien holder. And frankly, the bank doesn't want to foreclose. But the problem would be that, since your lien is secondary to the bank's lien, you have to make the bank whole first before you get anything back for yourself.
It's fine as long as everyone does what is expected and colors within the lines. But if that always happened, no one would ever need attorneys at all. Good luck.
