Well, it depends on whether or not there is enough money to cover all the encumbrances - mortgage and liens - on the property.  If there is enough to pay the mortgage holder and the IRS then the lien is released.  If , however, there is not enough to pay the IRS the lien is not wiped out.  Instead, the IRS will come after you for the money in another way I am sure.  You should consider seeking help with all of these issues here.  You should see about modification of your loan and you should seek help in settling the IRS debt with a monthly installment plan.  IRS debt is also not wiped out in a bankruptcy.  Get help.  Good luck.