IRS/foreclosure and bankruptcy questions

[Nynavey]

In trying to buy a house recently, I've uncovered its past history, which involved a foreclosure months back done incorrectly (which much be done again), and the previous owner filing Chapter 7 bankruptcy.

Normally the bankruptcy would make no difference to me, but the previous foreclosure was 'false', and now these people have an asset (they did have equity) to throw on the table. A stay has been placed on the property, which I'm trying to get lifted in order to purchase this house. Nonetheless, in doing more research it's been discovered in the matrix of creditors is the IRS, which of course has priority.

Does this mean the IRS will have first and all rights to this property? I am hoping these people's lawyer will work with us and sell the house so his client's can liquidate the house at least. They have not had the 341 meeting yet, it's scheduled for later in the month.

Can a stay be lifted before this 341 meeting? The house was not included in the matrix because these people thought they'd lost it in foreclosure months before. Can the IRS be a creditor unrelated to the house?

I'm sorry if my questions seem elementary, I am just learning about this, and all because I wanted to become a homeowner!!!

Any help is greatly appreciated. This is in the state of TN, if that makes a difference.

Thanx,
Nynavey