However, to you as the investor the best options are to buy for cash or buy with seller financing where both methods are structured to satisfy the outstanding taxes.

The customer service has been outstanding and responsive.  

.- - - - - We are clear in our rental agreement about how we apply money received:"PAYMENTS.All payments made by Tenant to Landlord after the tenancy commences, no matter how designated by Tenant, will be applied as follows: first, to any outstanding amounts due for damages/repairs, utilities etc.; second, to any outstanding service charges or fees from prior months; third, to any rent outstanding from prior months; fourth, to any service charges or fees due in the current month; and lastly to the current month’s rent

Without an outstanding PM on the ground I wouldn't do it.  

The home would sell at ~270K and the outstanding balance is ~170K with ~100K equity but obviously would have to incur the 6% REA commission plus closing costs etc on top of this.

My wife currently stays home with the kids and I work in sales for a commercial fleet leasing company.

You would offer to pay out the outstanding loan plus the tax/water debts. 

That's not typical, as most go for years, and you may have to redeem all the other outstanding certificates to send it to a tax deed auction where you would get repaid.  

That would be outstanding @Rich Vogel.  

Outstanding permits.