In a real property setting all things are negotiable but most buyers will want the Seller to provide clear title which means curing any tax liens or deeds outstanding.

Our realtor was outstanding and really went above and beyond.  

I worked with an outstanding & well known agent in the DFW area and learned alot.

It is simply 10% interest on the outstanding funds, then that would be normal.The deal may have usury problems depending on what state you are located in.

Get an attorney on this one to make sure title is clear.Sometimes properties acquired through a tax sale have outstanding issues still attached to them.Make sure the seller is not just selling his tax position.I have seen these be fought out for years in legal battles trying to get clear title to the property.Meanwhile the guy takes rents or cleans out the properties and sells off the mechanicals for cash.Just get an attorney versed in tax sales for your state to be protected.Personally just on what you said I would go after other deals because of resale problems down the road.

Banks want to see about 2 years worth of taxes, current income checks, good credit, outstanding debt and down payment money.

I used Excel Homes and they have been outstanding (North Carolina should be doable for them)!

@John PenolaRegarding taking a 401k loan:You would have to confirm that your 401k plan allows for a 401k participant loan (and that you have not had an outstanding loan in the last 12 months).If yes, you can borrow up to 50% of the balance not to exceed $50,000.The repayment terms are equal monthly/quarterly payments (as you prefer) of principal and interest (e.g. prime + 1%) spread over a 5 year term (or longer if you will use the loan to purchase your primary residence).

You should verify that you are eligible to transfer the funds from your existing retirement account (e.g. if the funds are in your current employer 401k, you will likely not be able to transfer until you quit your job).Regarding taking a 401k loan and then purchasing the property in your own name: You would have to confirm that your 401k plan allows for a 401k participant loan (and that you have not had an outstanding loan in the last 12 months).If yes, you can borrow up to 50% of the balance not to exceed $50,000.The repayment terms are equal monthly/quarterly payments (as you prefer) of principal and interest (e.g. prime + 1%) spread over a 5 year term (or longer if you will use the loan to purchase your primary residence).

His ask is very reasonable and ~20% below market (basically wants his outstanding mortgage and closing costs etc).