https://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/t_i_r.pdf

What you say is what I feared had to be done...Will study the IRS publication on depreciation

I would suggest developing relationships with realtors and other professionals in you area to source properties before they become public. 

Alternately, he could use it for a vacation on the Riviera, leaving you to foreclose and pray someone pays more than you are owed at the public auction.If your borrower did not buy insurance then, well, you're both screwed.Lot's of ifs, Raj. 

@Joshua Feit Is the deal listed on the public market?

The last few hours have been spent wandering around in a quagmire of IRS Publications that have caused the death of extremely valuable brain cells. 

Was the only bidder a majority of the time until recent when 1 other bidder decided to join the party but was only window shopping and probably scared off of the OCCUPIED status)New London County CT  built in the late 80'schecked the public records and found the owner of the home. 

I work in Dayton, OH and am having a hard time finding a finish carpenter that is sober, has their own tools and transportation, insurance and shows up and gets the job done.

check public records to see if ownership has changed.

And pretty much every large builder in my area has a policy of not negotiating with members of the general public, and only negotiating with agents, because they know once you walk through that door, you are buying the place regardless if they move off the price or not.