A lien is a legal claim that can affect the property or the money due at closing. A payoff is the current amount and instructions a creditor or tax office provides to settle an obligation. An older bill or statement can be a starting point, but the responsible office or creditor confirms the current amount and payment or release instructions.
You don't need to pay off your back taxes before we settle. We buy houses with back taxes and liens — payoffs get handled through the closing, not by you upfront.
If you choose to proceed, the title company reviews ownership and records that affect the sale. Confirmed payoffs appear in the closing figures under the written terms. If confirmed amounts exceed the proceeds available, that difference has to be addressed before the sale can close.