Current Loan Balance: 100,952Interest rate: 3.75Mortgage payment + insurance/taxes: $1066Rent: $1500/monthEstimated current value: 227k Current cashflow: $369/ month, I also have a first american home warranty on it $68/month so after everything I net about $300/ month. 

Unless you have boots on the ground working off-market deals or even the tax auction, I advise extreme caution.

Tenants who are victims of such offenses may terminate the lease without obligations for future rent or termination fees.

They do not require any income verification, DTI, tax returns, etc.

Tax benefit?

Of course I will still run title tomorrow… how can I check on Federal tax liens? 

Would my mother's portion be affected or are their tax implications for her with this type of transaction?

We have 2 years of reported rental income on tax returns for both properties.

I would recommend reaching out to the county tax commissioner or treasurer for guidance on the tax sale guidelines as they may vary by county.

It's likely they aren't including all expenses including property management, taxes, insurance, mortgage payment, and capex/vacancy/repairs holdback.