Foreclosure in my neighborhood

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Hello BP community, 

I'm researching a foreclosure in my neighborhood that zillow says is worth 1.6 Million. The county records show liens from Banks for $400K and IRS liens for $60K. It's not clear to me why this house would go up for auction. What other research can I do on this homeowner's debt? If there isn't any other liens recorded, do I need to worry about other debt?

What reasons would a homeowner rather allow their home to go to foreclosure vs just selling his/her home with so much equity?

My next move is to get a hold of the homeowner and make an offer. Doing this for the first time is daunting.