You might just have to ride it out in court and defend your case for ownership no matter how frivolous the lawsuit ends up being and then counter suing for your attorney fees you spent to represent you during this court case.

I know this all sounds nuts but I know how old laws never get removed from the books and can defend some crazy action like this.

Again, know your lender and always be able to defend your numbers.

@Patrick Britton I have to disagree and defend REAPS here because the information you provided is not correct.  

Amaro is the AP case and found the for the defendants (the estate) due to "unclean hands" on the part of the plaintiffs.  

It's initially defending against claims that it may not be legal, why would that even be a thought about something that might be done?

It's the two of you that have to defend it to the IRS.

His counter argument is that he is not as flagrant as others and thinks he could defend himself to a tester or claim.

The only people that buy these junker properties are overseas investors who truly have no clue about the Memphis market.I would not worry so much about my comments; if you honestly believe that selling those low end homes is a good investment, then you can defend that to your clients.

Just keep all your notes and calculations in case you are asked to defend your valuation.