As a real estate investor it is our duty to see those funds filtered back into the tax payer account through housing subsistence programs.Frank

That assumes that they were properly notified (which they generally are), and is why you may need to clean up title through a quiet title.As far as IRS liens I believe others have stated here on BP that getting them removed from a property that is no longer owned by the originally listed tax payer is not uncommon. 

normally you would enter 12/31 because you are a calendar year taxpayer.  

mortgage interest payments can or cannot be deducted for a taxpayers second home?

You can deduct it in full if you are within the rules surrounding the Safe Harbor For Small Taxpayers or the Routine Maintenance Safe Harbor.

Will Barnard is correct.I represent taxpayers before the IRS.

Because we have not been able to close I will have to move all my belongings into storage over the next 2 weeeks and find a new apartment to live in until HUD can close on the house.As a taxpayer I am pissed that HUD would be willing to let this and other houses sit idle and deteriorate at taxpayer expense, despite having interested and capable buyers.

Since they were basically relieved of liability of the defaulted mortgages (a gift from tax payers) there is really no incentive to drive prices down by releasing large volumes.

As a taxpayer, I hope that the FDIC had a reasonable shared-loss arrangement in place for the assets of the failed La Jolla Bank.

The SAFE act mandated that states pass their own version, and many AG's and banking commissions are looking for ways to prove to the the tax payers that they are doing their job.