1. If property owner in arrears on property taxes, local jurisdiction can lien or take said property.
2. If oproperty owner in arrears on mortgage loan, local jurisdiction is NOT a party to that contract, so has no business meddling in my opinion.
3. Re 2. above, it must be they claim the jurisdiction can take property under eminent domain, per Kelo decision whereby city/jurisdiction can take property for anything they want, to get more property taxes, to change uses, to remediate so called blight, which is often completely abused.
If the property owner is arrears on the mortgage loan, they are most likely in arrears on the property taxes and thus the local jurisdiction is a party to the contract........
With that said — this is a truly scary concept.
My husband and I went 3 years without a steady/reliable income and the worst we got was 6 months behind on the mortgage - bad, I know - but we finally got it all square.