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.

Longer term, it's likely that you'll get bailed out by some Federal disaster relief program. 

Self-employment income from flipping will be taxed at the ordinary Federal rate plus the state rate plus the 15.3% FICA rate generally. 

As a result you don't have to file a non-resident income tax return with the state.Living in New York City and having real estate is great because if you have a taxable loss from real estate, it can reduce your federal and state/city tax liability.

So a total federal tax bill of 19K plus state.  

It's effectively "dissolved" into the owner for federal income tax purposes. 

Why would any rational person get involved with a federal government program without being properly educated on it?

Income tax and other non-real estate related taxes can be transferred to the tax payer that owes the money, it may not be automatic, Im not sure about State, but federal tax liens there is a form and a fee (around $400) to get the them removed and its not guaranteed they will allow it to be removed.

Current federal rules state if I hold it for 10 year's then I will pay 0 federal taxes on the gain when sold. 

Four federal returns means you've got a lot going on!