You can use the tax sale as a negotiation tactic, you can say that you'll pay the taxes at settlement so they don't lose the property and you can tell the seller that at tax sale somebody could buy the property for just the amount of the taxes owed and become the new owner and the former owner/seller would get nothing. 8. 

Also it'd be important to get a payoff(s) to see exactly what is owed on all potential liens and have a estimated settlement statement drawn up.

If you get sued, only one property is available for settlement .

Due to a legal settlement, I have some capital to invest and I need some help/advice formulating a plan.

Maybe some of these ideas will help you -Learn Power prospecting - where to find the motivated seller (not listed real estate)Negotiating - how to put the deal together - how to control equity and take possessionContract Engineering - what important clauses to use to able you to assign properties, what to do if things don't work - how not to get sued - Controlling real estate - how to control hundreds of properties with little or no money using check funds - delayed financingCreative Financing - Delayed settlement - banking days - hybrid offers - joint ventures - partnering with sellers - vertical break ups - front porch clauses and contracts - etcA team - a lawyer -they are a dime a dozen - agents - the same price - title companies there are many right in your back yard - none of the above will help you until you have something for them to work on.

No key at settlement?

Contracts sometimes actually say that tax prorations will be based on previous year's assessments, others say once updated info is available it must be remedied post-closing if incorrect at time of settlement.

If this is an insured transaction, your title insurer will advise you what language is appropriate for both seller and buyer vesting and what supporting documenting escrow or other settlement agent will need along with the Warranty Deed or Grant Deed, as is used in your locale.

Settlement attorney recommends putting into land trust where buyer would be trustee.

In PA and MD, if you are an out of state owner, there is an additional tax that must be paid at settlement.