We file an expense report every time and get reimbursed, using receipts for purchases, and IRS mileage for driving our cars and per diem rate for meals.

When you file your deed, you will be require to recite the actual consideration paid for the property, including the debt you assumed. 

So wouldn't have been able to file until mid-october now with lease up at 10/31. 

The owner/borrower could file BK and alert the lender/trustee and the automatic stay would prevent the scheduled auction sale from taking place.

However, a careful reading of the FBI "story" revels this:…After forging your signature and using the fake IDs, they file these deeds with the proper authorities, and lo and behold, your house is now THEIRS.* (please note the asterisk)* - Since the paperwork is fraudulent, (I believe it should read "forged" since a fraudulently obtained deed or mortgage may, in some circumstances, be enforced) the house doesn’t legally belong to the con artists.Based on that I think even the FBI agrees with my post that nobody can lose title to their property through a forged deed. 

check BuildZoom.com for permits filed and reverse search those GC licenses

And to be legally complaint, we can file the income in tax return.

S Corp owner thought, no problem, I have the corporate shield, had his lawyer file motion to have suit against him dismissed because after all, they should be only suing the S Corp.

Yes you get all depreciation write-offs etc as just an individual holder, and note your accountant will likely need to file a Delaware tax return each year for your rental income in Delaware, but this is usually easy and cheap. 

Depending on the size and scope of the damage have you looked into filing an insurance claim.