Bankruptcy, standing
State tax sale isn't a transfer for value, as the purchasers bid on the lien obligation without explicit reference to the value of the property.
Both parties have standing, where one was the initial plaintiff, and the other was later joined prior to their divorce, which left the joined plaintiff with sole rights in the property but other issues unresolved.
Plaintiff's recovery limited to homestead exception.
Purchaser of the lien obligation was the initial transferee, as the state merely facilitated the transfer.
Second purchaser had no constructive knowledge of fraudulence of transfer in the circumstances.
http://media.ca7.uscourts.gov/cgi-bin/rssExec.pl?Submit=Display&Path=Y2016/D01-20/C:15-1166:J:Hamilton:aut:T:fnOp:N:1689637:S:0
Since 2011. An occasional commonplacing of the U.S. Circuit Courts of Appeal.
Neither an authoritative statement of the law nor legal advice. Quick work.