IRS Lien on Auction Property

[Matt Fabian]

I am interested in a bank owned property that will be auctioned off on auction.com. The property (a home on 3 acres) is worth around $250k. I did find out there is an IRS Federal Tax Lien "on all property and rights belonging to the taxpayer." The amount is $21k.  The property has already been up for auction but failed to meet the reserve amount (highest bid was $135k).  I have a few questions about IRS liens:

1.)  since the property has been foreclosed and is now bank owned, does the lien still apply? 

2.)  If the Lien does still apply, this means  the IRS may buy the property within 120 days after sale at the price paid at foreclosure sale, correct?

3.)  If IRS does not buy the property, what happens to the lien, if anything?  My plan would be to re-sell the property.  Would it be unselleable do to the lien?

I really love everything about this property but the lien issue has me totally confused.