. :)Still don't know if they are CFD/note or a note a DOT, big difference.Don't mean to complicate matters but were they purchased and modified, now held for sale or are these equity funded by the holder?

You didn't mention the type of lien, but you can sometimes successfully negotiate with the lien holder to reduce the amount. 

I've been a multifamily holder for about 7 yrs now.

If the bank is the servicer but not the note holder, does the servicing bank have the right of offset?

Most tax sale auctions and tax liens take a higher priority in most states than the foreclosure itself but you should examine state and local laws first before proceeding.If the property was in Louisiana then:1) After visiting the property, taking multiple photos looking for activity on the land, asking neighbors where owner is and inspecting outside of building (from street) for condemnation damage, I decide to buy after my survey.2) In Louisiana, I would buy the property at tax sale auction, bid as low as 20% and get my foot in the door with a tax title.3) I would send a copy of my new tax title along with a Post Tax Sale notice to all lien holders on record in the Clerk of Courts for the Louisiana property as per RS 47:2156 with certified letter.

Often you'll hear CDs, I love CDs, they lose the holder money after inflation more often than not.

I used to think that if the borrower filed bankruptcy then the mortgage holder simply took the property back as an REO. 

She is the title holder though it is clear the house is owned by me.

You need to find out what lien holder closed and what position they were in when they foreclosed.

There is a six month wait time before a certificate holder can file an ejectment lawsuit.