Lenders, need some clarity

[Mike Reynolds]

I had a deal fall into my lap. Suffice it to say I have to take the deal one way or the other. No choice really.  20k owed on back taxes. No liens that I know of.

I can loan the money or buy it outright. It's a family member. 

If I loan the money can I as a private lender put the taxes and insurance in escrow with the note? If not then how can I get the tax office/insurance company to let me know if they miss a payment as a private lender. 

I have never been a private lender but that's just one option. The option I don't have is to let it go back. My property is next to it and makes me landlocked except for my easement that hasn't been used in thirty years. It would cost me more than 20k to build that driveway so why not just buy it? 

But since it is close family, I might consider a loan. But it needs to be iron clad and that's where I need help.