Something to consider too. If you also had a foreclosure at the time of your bankruptcy, traditional lenders will make you wait 3 years after the foreclosure.
The IRS has a right of redemption on properties they have liened. The foreclosing attorney had probably forgotten to notify the IRS and give them their permitted time to determine if the home had sufficient equity to payoff the mortgage before it foreclosed and then liquidate the home to cover the tax liens. What they weren't mentioning to you was that there was a slim chance you wouldn't be able to buy the home 120 days later.
I think the bankruptcy poses a much bigger threat to killing this deal. The bankruptcy court will want to consider the equity in this home as part of the bankruptcy.Assuming the court has already released the home from the bankruptcy, the credit card company will not likely release it's lein until the bankruptcy court indicates that the bankruptcy is complete and all debts are forgiven.Unfortuneately, this happens commonly when it shouldn't. A preliminary title search should have been completed before the property was listed for sale.