How to deal with back taxes on a seller-financed note?

[Katrina P.]

There's a property I'm interested in where the seller is VERY motivated to sell because she is in jeopardy of a tax foreclosure this coming March. Anyways, she's willing to finance a note for me, with great terms; however, she owes $9k in back taxes. How can we do a LC with the back taxes owed? My plan was to use the downpayment I would otherwise pay her, to pay the 2008 taxes to bring it out of foreclosure ($2500), then I would be paying the rest of the taxes, as I could, to bring it current. However, there's no way to record the LC if I do it this way, is there? Please give me some advice on this!