I am sure yo are getting Title Insurance. Aren't you? Read your Title Policy and make sure there are no exclusions. As a rule, the bank gives you clear title with all known liens taken care of. The itle Company will do a thorough search of all liens before issuing a Title Policy. If you know of a lien, talk to the Title company to clarify that it will be paid off.
As part of your purchase loan(and something you pay for), you are required to get title insurance.
Basically, you are paying a title insurance company to research the title to your home and insure against defects. However,title companies are great at their "exclusions". To be sure, you should also make an appointment at your local IRS office and find out. That might not be the most fun in the world, but if you have concerns, it should help clarify them.
I hope this helps.
Pat Palmer-Broker Associate
Boca's Best Broker
2424 N. Federal Hwy #318
Boca Raton, FL 33431
Also if you are getting a mortgage your lender week review the title insurance binder. They will not allow you to buy with an IRS lien.
If you are paying cash, make sure to hire an attorney to review your title insurance. It's not too expensive and I can highly recommend attorney Lawrence Fuentes http://www.FKLaw.com
All the best,
Alma Rose Kee, PA
Future Home Realty
PS-as Larry pointed out, if you are concerned, consult with a local real estate attorney.
Typically when a lender forecloses all lien holders are notified and arrangements made at that time.
If you have additional concerns you should really contact a real estate attorney to have your questions answered.