Refinance issues, tax sale question

I'm not sure I'm completely following... .  But generally, once your taxes are purchased, they can own your house by paying the tax debt yes.  They don't want to own your house.   They just want the easy "juice" they get to charge you for buying your taxes.  But, no, they don't have to buy your mortgage AND the taxes, just the taxes.  And the tax liens take priority over the mortgage.  In other words if you sold the house, the person that owns your taxes gets paid every cent of the taxes plus their mark up before dollar 1 goes to the lender or you.   And yes, they can evict you and sell your house just by owning your taxes.   Anything left over after they and the lender gets paid goes to you.  But, the house gets sold at auction--not exactly the way to maximize the sale price. 

If you owe 392 and they're owe 50k for the taxes and the house sells for $250,000 at auction...they get their 50k first, the lender gets 200k (and loses $192,000).

That's why generally we'll give you a better deal to escrow your taxes.  Then we know they're paid and this kind of thing can't happen.

Good luck... hope it helps.   Feel free to get in contact with me for any other questions.  Always glad to help if I can.  I won't see a reply here (I reply to too many posts to subscribe to them all).

Where are you located?  You can look through the Zillow professional tab and search for a tax consultant.  When your in the professional tab you can search by city, state, and zip code.