Several Liens including a Federal Lien

[Alex Smith]

Hi!

I came across a property today on Zillow that has me extremely confused. I was hoping by posting the descriptions here somebody could help explain it to me and the process of acquiring a property like this.

So the listing says "For Sale by Owner $9,999"

In the description it reads, "Home has several liens including a Federal lien. Opportunity for investor/builder to foreclose and either acquire for $10,125 or immediately selling for higher at auction to the Federal government.

Unique situation for the expert buyer. Property has federal lien that can be extinguished or at least make money on the transaction and immediate federal lien acquisition. House will cost $8,350 or will be purchases for $11,000. 750 at closing."