Different procedures in different states, but it's likely there is more to the story than what we are being told (and what the preparer who asked was told).  The interest rate in my state is 16%, but some purchasers don't notice that there are existing liens that are not extinguished, or that the property can end up in bankruptcy court for many years. 

Taxpayer may have paid $75K for the property -- but did he have title insurance?  Or did it come with a $100K federal tax lien?