I was told that the money it sold for (can it be a small amount) would be given to the lein holders; thus giving the new owner a clear title. Can this be done?
Normally the lien is paid off at closing. Your title company should contact the lien holder for a payoff amount, and arrange for the payment. If the lien holder can't be contacted, a sufficient amount of money might be placed into escrow by the title company, or paid into a court in order to make sure that the lien is taken care of.