Tax lien ethics - holding back yards and drain fields hostage

[Steven J.]

I've recently had some great discussion with a fellow tax lien investor and I've been researching liens more and more. Come to find some potentially quetionable ethical calls made and I'm curious to hear what others believe.

For example - one local story shares the woes of a family who's portion of a back yard was auctioned off at a tax lien sale. The owner is asking for them to pay up $3000 for the 3.75 x 110 feet strip of land that contains their fence. News article here

Second example is the same company buying the liens on two drainage ponds in an area with now HOA. Article here.

Now in both of these examples Nasty Joe's LLC bought liens and played the game fair and square and is asking for people to pay up. I don't think I could personally be that cold but I don't know the story all too well either and I'm trying my best not to judge.

More genius I thought was the developer who allowed his properties to default on taxes. Then when the auction came he bought back every single lien at 1% (this was a bid down the percentage auction). In my opinion that's a genius way to administer a 1% loan on multiple properties rather than getting traditional financing. 

What are your thoughts on strategies like these? Do they cross an ethical line in any way? What other scenarios have you seen used when purchasing tax liens?