I didn't say a word but I will. This is slimeball's using the system to his advantage. Slimeballs are everywhere. There's one here in Houston who bought a free and clear home (aprox. value 150K, I believe) for $5k. over a disputed homeowners bill (inflated by lawyer's bills). It has been resolved in court and her home was returned. Her lawyer is currently suing to have all her expenses to fight this case covered.
At the onset of the Houston case, it came out early on, that the man who purchased her home at auction has hundreds of these properties and uses them as rentals. It was also disclosed that he owes hundreds of thousands of dollars in property taxes on these rental properties. People like this man, work the system both ways.
It boils down to buyer beware - owner beware.
Sounds like The House of Sand and Fog by Andre Dubus III. A fantastic novel for anyone looking for something to read.