Can you own a deed to a house but not the house?
A few months ago I was talking to a friend who is not super sophisticated when it comes to real estate. He wanted to buy a house that was around 120k on the market (that's what the same house was on sale for across the street). The property was going to go to auction because the person who "owns" the owed a lot in back property taxes. He brought up the concept that the owner only owns the deed but that he had paid 8k for the house just three years earlier
A few weeks later I asked him what's the latest with the house and he said that the supposed owner of the house only owned the deed but not the house itself, and therefore had no rights to the house?
This does not make sense to me. Is this possible?
When I think of a deed I think of the legal owner of the house. So for instance the bank owns the deed to my house since I have a mortgage with them and then in 30 years when my loan is completely paid off I will then own the deed.