If the house is worth what you believe and they only owe half that the junior lien holder has the right to pay off the primary lien holder to protect their interest.

@Denise Evans after @Rebecca Wadsworth receives the tax Deed, would the Quiet title action satisfy any noticing to the creditors, lien holders, etc?  

This holding company is referred to as the Exchange Accommodating Title Holder (EAT).

I do not always value nonperforming liens as highly as the lien holder, but I also do not put much money (usually just a half year's property tax payment) into a property unless I secure the interest of the owner, or of primary lien holder. 

We need to be included on his insurance policy for the property.How does one contact the homes insurance company to be named as part of the policy holder.  

In a reverse, the qualified intermediary for your 1031 exchange sets up a new entity called the exchange accommodating title holder (eat).  

@Don Enrique  @Zac Wolf   That is an Excellent point Don.I assume if this was CA and an improved home this thing got bid up possibly hundreds of thousands of dollars over the amount owed.. and those funds ( if there are no other lien holders) are eligble for this past owner to collect..

I know a lot of very wealthy SFH holders and we have done extremely well without MFH.

As far as the foreclosure goes...yes, the subordinate mortgage CAN foreclose but it will likely be purchased by the primary mortgage holder in order to protect their interest in the property.

The answer may depend on the state where you are looking to invest.In Texas, most liens and mortgages are wiped out by the tax sale so if you purchase the deed at or after the auction, the previous mortgagee or lien holder can only 'take it away from you' via redemption.