Federal Liens That Are Junion Liens
Does anyone have any knowledge or experience with federal liens as junior liens?
I'm interested in a judicial foreclosure auction where the US (Small Bus. Admin) has a junior lien. The 1st mortgageholder is foreclosing. The property is not worth the judgment plus the SBA loan, but it is worth more than just the 1st judgment.
I have read US Code Title 28 that states "Where a sale of real estate is made to satisfy a lien prior to that of the US, the US shall have one year from the date of sale within which to redeem, except that with respect to a lien arising under IRS laws the period shall be 120 days..."
I'm assuming by the statute, that if the judicial sale does not bring enough to pay off the US-SBA balance, then the US could still foreclose for the remaining balance within one year. (120 days for IRS liens). How does this normally get handled?
Does anyone have any experience with this????? Or know of any further statutes that govern this?
Thanks.... 
Federal liens will not be wiped out...if you buy this property at auction be prepared to pay the SBA...
The Fed's might not claim the money, in which case, after 1 year, you will not be held liable...be careful though, they might claim...
that is my understand anyways.