You don't actually own the property until the sale is ratified by the courts as a foreclosure is a legal process though you are generally responsible for the property taxes for the property from the moment you win.

I'm loving the responses.

I understand it was (allegedly) caused by a kid, but parents must take responsibility for their children's actions.

Not just you throwing bleach on it and painting over it.In general it sounds like you were notified of the issue, attempted to correct the problem but were unable to due to the tenants non response.

Your response really helped me understand the key aspects of short sales, especially regarding title issues, lender valuation, and inspections.I truly appreciate you taking the time to share your expertise!

Rent payments from the medical LLC are fully deductible as a business expense, while the property-owning LLC will report the rent as taxable income, which can be offset by deductions for expenses like mortgage interest, property taxes, maintenance, and depreciation.To ensure compliance, document how FMV was determined—using market comparisons, an appraisal, or similar data—and draft a formal lease agreement outlining the terms, rent amount, and responsibilities.

You are right about dark web exposure.

Thank you for the responses everyone.

@Nathan Gesner  will do, thanks for your response!

Now, we are no longer responsible!