@Richard Heine the proper procedure is going to be very dependent on your state statutes on how to do this. 

Tax liens are a higher priority than mortgages, therefore, if you foreclose on the lien at the end of the redemption period, you wouldn't have to pay off the mortgage, you would only have to notify the bank and all other lien holders of the foreclosure (see statute per state) before you will be able to foreclose and receive a tax deed (which will need to be cleaned by an attorney $1,000-$3,000).When you foreclose you will ONLY have to pay off the liens that are ahead of yours, as well as other tax liens purchased by other investors in subsequent years. ie. 2 year redemption period, you buy lien from 2010 due tax, and another investor buys 2011.

Understood, but the statute says "any person" which is NOT a servicing company. 

Only contractual remedies are available for an error or omission that arises from a property information report.I suspect Lloyd's would rely on that statute to determine coverage.

Our State Statute does not give a definition of “permanent†only that the home must be placed on a “permanent†foundation for the taxes to be considered real estate taxes.

The CBA statutes are found in various federal and state laws, pertaining to contolling business arrangements.

@Dan Griffin The process is codified in NC state law Chapter 45, article 2 http://www.ncga.state.nc.us/gascripts/Statutes/StatutesTOC.pl?

Gotta love MA land court - it writes it's own statutes. 

An investment opportunity available to those who want to learn and participate with all of the states, rules and statutes, redemption periods, interest rates, etc.

dmj4Because each lender seems to have their own magic words there is no "one size fits all" formula that I am aware of.However, what you want is clear unequivocal language that they will not pursue a deficiency and that this is a part of the short sale bargain that you have struck.Also beware of the following which I picked up from one of our local "mills" that handles a lot of short sales.When you get your settlement agreement keep it close to you until the statute of limitations has run on the lender's ability to pursue you.