Are you on a payment plan for the debt? They can and have checked public records for any outstanding taxes owed as they don't want a lien placed on the property they are selling you. So you will typically need to show that you have maintained a satisfactory payment plan for the debt.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! 
Last App: 4/5/13 Gardening until July 2014