Someone mentioned settlement and that I should have the foundation looked at.

Seller is responsible for the taxes (if that's what your contract states) and the title/settlement company will see that through. 

She actually told the first judge she had gotten a $12,000 settlement the first month she did not pay and paid it down on a new van. 

I think what you are looking for is someone trained in the ways of real estate investing - an agent that will:Introduce you to FSBO's - Expired Listings and other real estate opportunitiesWill be your fiduciary representativeWill make offers for you on suitable real estateWho understands creative financing; delayed settlement, seller assisted financing, assignment, wholesaling, REO, tenant selection, soft money mortgages, tax salesWho will be responsive to your financial goals and a person of integrity and trustHelp with direct mail and street marketing to locate transactionsHousing and rent court marketingAbsolute aware of financial and contract clauses as well as contract engineeringCan assist in - delayed settlement - automatic extension, performance mortgages, subordination, principal mortgages, options and joint venturesAware of bidding on REO, forclosures, tax sales and public auctionsUp to speed on commercial real estate, lots and land as well as businesses with real estateHow should you treat this wonderful person (if you can find one) -They should have a commitment from in the form of a Fiduciary Buyers Brokers AgreementYour agreement to pay them a commission on any non-listed deals they bring youA bonus agreement for great deals that you closeA gas budget - or a cash payment for gas Kind words and respectTo be sincere and active with the agentRespect from youFirst class training on how to represent youSometimes an equity interest in the great deals the agent has initiatedListings when you are ready to sellYour cooperation - all your financials, tax returns and other information that will help your agent close dealsA few free lunches ----Good luck --- Charles

Does that mean that the new note holder/investor may also be entitled to some potential insurance settlement?

Since this was awarded to me in the divorce, usually assets gained in a divorce settlement is non-taxed, but since She bought it as a 1031 exchange, do I get stuck with the capital gains taxes?

The lien has to be satisfied at settlement to clear the title.  

Would I be able to generate a legal/legit Sales contract and/or settlement sheet for the “sale” to the property?

Hello BP I've been interested in real estate investing for quite some time, my initial story and idea is in my first post, however things have changed for the better and I believe it's expediting my ambitions significantly, I recently came into roughly 150k cash from a settlement.

Hello BP I've been interested in real estate investing for quite some time, my initial story and idea is in my first post, however things have changed for the better and I believe it's expediting my ambitions significantly, I recently came into roughly 150k cash from a settlement.