I've gathered that just from talking to a couple of tenants in the area..In the beginning I had a title check done and a city tax lien showed up from 2012 in the amount of $4,100 with interest accruing .27 cents a day so I thought the lien was $5,926.35.

If you have an understanding of real estate and think you can get better results growing your retirement savings in that asset class, then a self-directed IRA or Solo 401(k) is a means to do that.All investments are made in the name of the plan, all expenses come from the plan, and all return accrues to the plan.There are several different plan types and service models available.  

We don't have any debt except that we're paying a car loan that it's not accruing any interests.

One had financing issues but had enough equity cushion to pay back the loan and accrued interest, one (equity) had the exit extended and preferred return reduced, and another is unable to make some payments due to a fire (they have insurance, of course, which will reimburse them).

I assume the bank needs to pay the amount accrued up until the trustee deed being filed. 

I would expect the Broker to know the law and ensure you operate within it.Out of curiosity, why would it take you "years" to get your license?

General curiosity because I can't seem to get a clear answer.

So, I'm curious to other's opinions as if I should sell, take the around $55k loss of the purchase price and then take that $40k that I could walk away with roughly (owe $140k, it's worth $188) along with my tax deductions accruing over the years and try buy something else that will cash flow better.

I will keep it in mind if this moves forward.Out of curiosity, do you lend nationwide?

One option you have is to refinance that property to pull out some of your accrued equity and reinvest it.