CA Auction.com Sale with Federal IRS Tax Lien/ PACE/other liens?

[Matt E.]

Good Evening,

I am looking at bidding on a house tomorrow at an auction through Auction.com. I have reviewed the title report and there is an existing federal IRS tax lien for $40K. Any chance that could be "negotiated down" with the IRS? :) 

The first mortgage holder has initiated the Trustee's Sale for tomorrow. The number three lien on the report is for $24k and dated February 2014 and is in favor of "The Secretary of Housing and Urban Development" 

Does anybody suspect if this could be tied to a PACE loan, and if so, are PACE loans now subordinate, and get wiped out at the sale? I have checked the property tax records and I don't see any special assessments linked to a PACE loan. 

If this isn't a PACE loan, any ideas on what kind of lien would be in favor of HUD? and will it get wiped out?

Also what are your opinions on purchasing the title insurance through Auction.com?

FYI the current owners have owned the house since the mid 90s and the current first trust deed was originated in 2006.

Thank you for your advice and input.