Can a town foreclose on past due property taxes and take your home?

Absolutely, they can. A lien will be placed on the property which prevents you from being able to sell the property or mortgage it without paying the property taxes. The last resort is that they can have an auction and sell the property on the Courthouse or City Hall steps with the new buyer being subject to pay the taxes owed on the property. If you wait this long you cannot bid on the property yourself.