Federal Tax Lien Foreclosure Auction

[Daniel Stegelman]

This seems to be one of the more confusing topics I've come across. I have bought some REO properties in the past (I'm 2 years in the RE game). I've made some decent money from REOs but I'm considering buying properties at Sheriff Sale Auctions (I'm in Indiana although this shouldn't matter for federal liens...I think). HOA, contractor liens, property tax liens, and municipal liens make sense to me. I have been reading books, forums, watching Youtube videos on liens in general (priority, rules, etc.) but I'm still confused what right and wrong with federal liens. Some people say if you wait 121 days then you're free and clear. Others say they bought a property at foreclosure and had to negotiate with the IRS to lower the lien amount. Others say you just have to wait the 10 year period before selling the property (barring the lien hasn't been filed for an extension) collect rent long term, and then sell after 10 years. No one seems to be agreeing or there is probably some nuance in all of these scenarios (and I just need to bust out my check book and pay a lawyer haha).

I'm going to place a specific scenario and I want to get your guys' opinion.

Say a bank foreclosed on a property with a judgement amount of 50k. I go to the county recorder and see a federal lien of 20k recorded a year after the recording of the bank lien. I bid on this property and win this auction for 50k and 1 dollar. 

1. If I wait the 120 days IRS redemption period, am I free and clear to own the property without having to pay the federal lien on day 121?
2. Does this 10 year statute period apply to bank foreclosed properties? 
3. Is the lien dropping off the property an automatic process or do I have to notify the IRS or get a lawyer involved to release the lien? 

You are probably going to say ask a lawyer but some of these resources that I've read this information from were also from lawyers (supposedly, I guess that is what I get for free advice)...I'm just trying to hear from some more real world experience. Also, a lot of the references on this forum and the resources I've looked at are older and I wanted to make sure there is nothing new.

I may just need a lawyer with a background in foreclosures to answer these questions. Does anyone have a good one that they think could answer these questions for me?

Any input would be greatly appreciated.

Thanks,
Dan