The market value of a property is rather subjective. A property is worth as much as a willing and able buyer can offer and pay. The list price will not necessarily be the sale price.
However, to simply things, let's say the winning bid on a property is $700k. Are you saying there are additional non-mortgage liens that need to be paid in the amount of $60k or so? Are these mechanics liens? past due HOA dues? past due taxes?
The only way the sale can close, is if all liens are satisfied. That doesn't necessarily mean they all need to be paid full face value, they can be negotiated down. Some lien holders are more open to negotiation than others.
If any of those lien holders don't 'play ball', that could very well kill the deal, especially if they demand an exorbitant amount (in my experience, past HOA dues sent to collections can be rather difficult to deal with). Then again, how badly does a buyer want the property? Some buyers are willing to pay more than the perceived market value of the home.
Bottom line: Be sure to talk with your agent to find out the nature of those liens, and how 'open' they are to accepting less than full face value. It's best to get a realistic view of these things up front, to save yourself allot of extra time and unnecessary heartache.
Hope that helps...