Hence the lot on which the house resided was taxed at a 45% discount based on actual value, while the tennis lot was taxed at about 4 times what it should have been by value. 

From what I have researched they seem legitimate but the person I am working with is flakey, takes forever to answer questions so I thought I would see if anyone else had experience with this lender.  

There are many tax accountants on Bigger Pockets that can help you with your situation. 

If your friends have a rental they should hire a tax professional. 

Quote from @Joshua Tucker: What specific tax benefits can high net worth individuals receive from building real estate on tribal land?

Adding the ex to the title could trigger gift tax implications, so keeping it simple is best.

They lowered the “taxable value” by 40-50% and then raised the tax rate about 35-45% lowering everyone’s taxes that year.

Fannie/Freddie (Conventional) loans aren't just about rate and transfer taxes. 

if it is unsecured loan that is the consequence, you lose they entire thing. as far as tax write off, sorry but none.

The only taxes I remit directly now are the tiny town tax they implemented of 1%.I just take my net income spreadsheet and calculate the 1% and give them a check.