Legal Question in Real Estate Law in New Hampshire

The general starting point would be a review of the loan documents and then a letter to the lender requesting the proofs. If that fails, then a suit needs to be filed to protect your interest and probably a lien upon any assets of the lender sufficient to protect your equity. As far as the Town goes, you may have to talk with the tax collector to see if they will hold off on taking action given the unique situation.

I urge that you meet with an attorney as soon as practical as these cases can get rather complicated and the tax collector is not a party to your private loan.