That person will be able to tell you what you can do and following that plan will give you peace of mind about your further investing strategy.

I've sold over 80 homes personally in the last 30 months and I'm usually within $5k of the appraisal report when I run my CMA for clients.

If the IRS has a Form 1098, they assume that the person listed on the form made the payments, and they move on. 

Personally, I've bought older homes since I invest in mobile homes myself.

I personally feel it's very intrusive to call someone like this, but maybe it's considered acceptable? 

You will never pay more tax in recapture than what you originally deferred, assuming your personal tax rate stays the same.

In my view by doing that and making contact with persons found using the process will result in getting a lot of your questions answered.Have an Excellent 2025,Doug

I've personally helped many OOS investors here and they've been very happy with returns. 

I'm currently working with an estate planning attorney and she said she said we could put the LLC in the Trust but said she was not the best person to advise on the pros and cons of that and that we should talk to a business law attorney.

@Shawn Questa I agree with you that there could be some opportunity here, but personally, with that little equity in the property, I'd wait for the pre-foreclosure process to start and  perhaps you can do a short sale (though I don't know the details on how that's handled in TX).