negotiating with lien holders after sale - purchase @ sheriff auction

[Account Closed]

Just left the Sheriff's Auction here in Omaha this morning. One of the properties I was going to bid on has a $17,000.00 federal tax lien on it, $63,000 mortgage which is in default, $6,000 in back taxes. This auction was being teld for the $6,000 back taxes. I found this all out at the county deeds office before the auction.

two investors who appear to be regulars at the Sheriff's auction did bid on it, one ended up getting the property for $10,500.00 From what I understand the liens do in fact carry over to the new owner. 

When i asked the investor who won the bid for $10,500, he said he is planning to try and negotiate with the federal tax lien (IRS i assume) and with the mortgage company.

can anyone elaborate on this or have any experience dealing with lien holders on a property you bought at auction? I didnt bid on that specific property because I estimated current value around $30,000.00. The two investors that were bidding against eachother obviously know something I dont regarding dealing with lien holders, sounds like they are at these every month for at least the last year or two and have quite a few properties.