I have a family member and his wife and kids in my dad's house, who died in Jan. 08. We had established an agreement verbally that they would just owe the taxes as their rent. This went well for the first year, and now there is a lien on the house for taxes they didn't pay. There is a second lien coming real soon, because they didn't pay anything this year either. What is the proper procedure to have them removed?

Send them a notice that you are terminating their tenancy in 30 days and they need to vacate. If they don't vacate, then file in housing court for an eviction order. In the meantime bring the taxes up to date.

Thank you Scott, I have already started on the tax thing, just didn't know how much leverage they had over common good will

Make sure you certify mail this notice. It is a life saver.

... in my dad's house, who died in Jan. 08. ...

Your dad died?

I guess we are assuming that you inherited the house.