Is there anyway, after 15years of living there, that we can walk away or under these circumstances do mortgage companies ever just forgive the loan since it was issued under false pretenses?   

Auction.com Corp internally bid against you, falsely inflating the price.  

That is 100% false. 

Upside is tenants are very forthcoming with their plans and as a result I have never had a vacancy unless I plan in renovations.No upside except false security, plenty of down side, to term lease.No down side to M2M. 

I'm not an attorney and IDK if this would be "false advertising" or whatever, but if the tenant agrees to the longer lease term and higher price than advertised, then you're fine.This has happened a lot in the last 12 months in OC.

I think IG/Facebook/Books give the false impression investing in RE is like investing in Stocks.

To use an absurd example to make my point: I do not really care if the interest rate is 30% to borrow the money as long as I get that money to do my awesome deal and the property will still cash flow afterwards.

Their retail channel charges an absurd amount of fees & points on every loan.

Is there anything in this strategy that sounds absurd?

I've heard of people taking bonus depreciation on new builds, so I believe this is false.