If a foreclosing senior lien doesn't notice a junior lien holder according to law, then those non-noticed juniors remain on title after the foreclosure sale, just like IRS would. But you make it seem that it's a unique and very dicey deal when dealing with a junior IRS lien when in reality it works the same for all non-noticed junior liens. You seem to think that one should be extra careful and cautious when there's an IRS lien recorded against a property in foreclosure whereas I think the same caution should be used on every foreclosure, regardless of the presence of any particular junior lien. Finally though, where I really, really differ with you is your last bit of advice for us. Bill, tell the truth.
Any info is helpful.
What you say about their lien being junior to real estate tax liens is generally true. However, the IRS has very strict guidlines concerning the removal of their lien. It doesn't happen automatically and may not happen at all if you don't follow their routine. Some of the counties that have foreclosed their liens and taken the properties are not able to sell them free of the IRS liens if they did not follow the IRS guidelines. Anyone considering buying a property with an IRS lies should proceed carefully.