My other plan was to try to negotiate the balance with the bank.

@Jonathan West, I have no idea what Nevada purchase contracts say, but I'd happily share it with the seller's side after backing out.Costs me nothing at this point.Might save them some time, now they can disclose that up-front to future buyers and not waste time if the results are a deal-breaker for them too.Maybe I'll be working with those folks again in the future, either writing offers on another house they have listed or in some other capacity.The Real Estate Gods ensure a Karmic balance to the force, so I'll take any free Karma I can get.

If the IRS, in its sole discretion, decides the property has value to recover a sufficient amount of that tax balance, whatever it may be, they can redeem and take the property and then sell it to recoup.  

Default tenant that owes several months back rent has finally moved out and my mom who is the new new owner (brother died and left house and assumable mortgage to her in his will) is trying to get gas service but the gas company says service is still active and past due balance under tenant's name.What is the best resolution?

The current loan balance is approximately $10,148,000 as of July 31, 2016.

I have been on the hunt for a nice balance of low taxes (compared to NJ almost anything is low taxes to me) and close proximity to central locations that retain low vacancy.

There were a lot of people with huge balances, and many others that just weren't paying.  

In short, I think this speaks to the frothiness of the market and any system with less checks and balances (i.e. now they can just buy anything the "crowd" may not have liked) is worse off. 

If there's any outstanding balance already drawn, you'd just pay that back according to the terms of the HELOC. 

How long -- Time on the market and price (reduction) are close cousins -Price softens as time moves on and motivation and reality is realizedEverything will sell at a price -The first thing I'd want to do is get the history of the property - how long on the market, why is it vacant - what's the reason for selling - is it listed - look at listingWhat is the mortgage balance - is it current or in the arrears - What other liens or obligations are on the propertyHow many owners - decision makersWhat is the commission - will agent splitAre they open to a reasonable and creative offersDo they want any profit or to just get it out of their nameCan down payment be paid over time -How much paper with they accept - delayed payments - principal mortgageWho is the decision makerHow fast do they want to settleEverything is negotiable - CONTROL IS KING - learn how to control real estate - it is a short cut to cash flow - it is the best way I know of assigning properties.Who controls real estate - An agent with a listing agreement (treat them well - they are in control for a period of time)An accepted option agreementA buyer with an accepted contract of sale with contingencies