@Charles Holder Lien investing is a thing, but not mine thing.

Generally the mortgage holder can pay off the taxes and then depending on the exact terms of the note could collect those taxes from the buyer/borrower.

Just remember to do a title search and make sure the seller is on the deed as the lien holder not acting as a pass through.My 2cents,Joe Gore

Why would they permit lossing there owed amount, one reason is the serving entity get notified and fail to notify the actual note holder.

Negotiated with the lien holder to get it done. 

In this case its board members were the original land holders and their kin, who ran it as if this land was still part of their family ranch and now we were their cattle.

., you have already received quality answers (@Dan Deppen and @Andy Mirza are experienced note investors, for sure), but I wanted to add a few points:- The main reasons notes are typically sold at discount have to do with risk (a promise to pay isn't really a true guarantee), time value of money (money today is worth more than the same amount in the future), and opportunity cost (what else could the note holder do with the money, as Andy alluded to). - You can read through my BP blog posts here.- If you scour this forum you will find answers to many of your questions. 

I think a good strategy is to start with some performing notes to get your feet wet and your accounts set up (servicing, collateral holders, BPOs, Title, door knockers, etc).

http://darrae.com/public/note06052013.pdfHow does one ensure that the property address and parcel (crossed out) indeed under contract by the borrower and should there be a request to be the first lien holder instead of the second?

Most note holders do not have any issues selling their notes in this market.