Could Someone Please Explain
Section 6339(c). Effect of Junior Encumbrances.
A certificate of sale of personal property given or a deed to real property executed pursuant to section 6338 shall discharge such property from all liens, encumbrances, and titles over which the lien of the United States with respect to which the levy was made had priority
It appears to me that property seized by the Federal Government then subsequently sold at auction operates the same as a bank foreclosure.
The foreclosing lien holder wipes out all junior liens and title is passed to a buyer free and clear of all those prior junior liens. That is how I would interpret Section 6339(c).[ Edited by DaveT on Date 04/18/2003 ]