This creates an opportunity for the legit STR owners to possibly pick up another STR property at a distressed sale price. 

You don't get to stay in the house after it sales at auction.

Also, be careful about transferring the title to an LLC while you have a conventional residential mortgage, as there are lots of discussions about that and the due on sale clause. 

Banks want to sale AS-IS WHER-IS WITH ALL DEFAULTS.

Current sales went down but prices are still climbing.We recently invested in Victoria as it has the correct economic fundamentals in place (GDP, Unemployment rate, transportation and population growth)Banks in Canada have always been careful as far as lending (which has sheltered us from the 2008 real estate crash) and there’s no signs of seeing that change in the near future.

You're willing to take on a lot of this, but whatever their net proceeds from the sale will be, are being reduced each and every month that property tax bill goes unpaid. 

I previously spoke with the assessor who said they would utilize the sales approach in conjunction with a program called Marshall & Swift (cost approach) for commercial valuation.

Sales volume will be down. 

Welcome to BP @Cam Shasteen often the county website has information on tax sales.

Right now all I know is a sales agreement and a limited power of attorney.