The reason I am talking to him is his wife owned a house that she received during their marriage from her aunt after her aunt passed away.During our conversation, he told me that it’s been 5 years since his wife passed, but the he hasn’t filed any paperwork.

Some other monthly expenses that you might want to consider:  PO Box with post office and a domain name (if you reserve new email and/or google voice number connected to a G Suite account or something). 

We file that paperwork with the bank each year also.

They can generally recommend a TPA or custodian that they are comfortable working with.A TPA (Third Party Administrator) will provide you and/or your investors with a self-directed IRA account, handle the flow of funds, and file reports as required with the IRS to maintain the tax-advantaged status of the IRA. 

I foreclosed, filed a disposessory, and got the guy out.

After we agreed to purchase the seller filed for bankruptcy.

They are responsible for filing the form 8824 that reports the exchange and transfers the basis from your old property into the new property and sets the new depreciation schedule.

After 10 years:OZ is worth $110,462 at 1%/yearNon-OZ is worth $134,391 at 3%/yearLet's say you ended up falling in the 15% bracket:OZ profit is $10,462Non-OZ profit is $29,232 after taxes.And don't forget under current tax law you don't pay CG on the first $38k anyway ($77k if filing jointly). 

Did you file a lien? 

Once a law suit has been filed it is illegal to transfer properties.