There are likely legal fees to foreclose, and subsequent taxes you need to pay to record your deed.

A 1031 involves the sale, and subsequent purchase, of a property.

I saw the good economy right before the downturn and the subsequent Bank crisis in the midst of that.  

I'm curious what the experienced RE investors here think the potential rising inflation and subsequent potential drop in property values will do to rental prices?

And if it IS Seller Financing, why would he be concerned if you sub-lease it out afterwards (because if you OR your lease-holder subsequently renegue down the track, he gets the property back anyway)?

This agreement travels with the property, therefore binding all subsequent owners until it expires. 

Subsequently they stated that since they sold it, that the sale would be considered a traditional sale and that the Trustee Deed would not count as a foreclosure and would not be held against his credit.

They had moved in with her mother who was in the process of losing her home to foreclosure & it was subsequently sold at a Tax Lien auction. 

This cause our costs to go way up for subsequent taxes.

The IRS, if you ask them-they wont just offer, will/may grant a first-time-offender waiver, however this will only apply to the initial tax year you failed to file and not to subsequent years.I made the same mistake.