I am selling my manufactured home and have been deferring my property taxes. Do you just pay the taxes out of my sale proceeds like a mortgage?

No.  If there is a tax deferment on a manufactured home, the taxes must be paid out in full and the lien removed from the Personal Property Registry before the sale can complete.  Ensure that you make the payment at least 2-3 weeks before your completion date to ensure that the lien will be removed in time.