What are the rules of funds redemption after foreclosure auction?

[Elena Pech]

I found an attractive multifamily property going for foreclosure.

Property assessment price is around 1M. Unpaid mortgage on this house is about 500K.

In one of the adds about the upcoming auction I found a note:

The property will be sold subject to the redemption rights in favor of the Internal Revenue Service by virtue of the tax lien(s) recorded in Registry of Deeds… (I found 15K)

2nd message: The premises will be sold subject to a one-year redemption rights in favor of the United States of America by virtue of the Notice of Lien for Fine and/or Restitution Imposed Pursuant to the Anti-Terrorism and Effective Death Penalty (In the listed book I found a federal tax lien of 450K)

The same person owned several more properties that are also in a foreclosure process. There are multiple state tax records for hundreds of thousands of dollars.

My question is if I win the auction, will I be responsible for the federal tax lien of 450K and all other IRS and state liens in addition to what I pay at the auction? Basically, will auction funds go first to the government and remaining to the bank or the bank keeps all the funds and I will be responsible for the liens beyond what I pay at the auction?

Whom can I talk about it, a title attorney?

[Odie Ayaga]

My understanding would be you would be buying the property for whatever you get at auction and the liens wouldn't fall off but for the redemption period of those liens the government would be able to call them due which is typically rare but is a possibility. There's ways to mitigate that risk so you'd probably want to do your homework ahead of time to figure out what they are. A lot of the note investors on here can probably help you with that