Definitely inform your CPA so they can handle it, there can be other cost items also (that occurred between the 2010 and sale date) especially if you've been using it as a rental and depreciating it, or the other costs that might affect the calculation, taxes, etc.Even though the "assessed value" is almost never the "market value" on someones date of death, the IRS will allow the use of the assessed value when that is the best or only information that you have. 

If I am reading this right, you would be getting a home worth ~ $149,000 for $149,000 (65k loan + 84k loan), would be vulnerable to letting the bank use their option to demand the full value of the home now, and you do not think you could get any bank to give you a loan for the bank's full demand of $84,000 if this were to occur. 

It probably just never occurred to them to seek a business license because they work for someone else.I basically have my entire office in a backpack between files in the cloud, laptop, and external drive.

keeping my fingers crossed  this happens.. if you look at the information you provided Oregon were we are currently building has been blessed.. and I can attest that these price runups in the Metro area are occurring... we are still a little under the 06 07 highs though in many sub markets of the metro area.I had lunch with my banker yesterday and there is still an acute shortage of buildable lots and they are granting me as many construction loans as I can get out next year.... 100 people a day move into the metro area.. so for us anyway... things look good and its nice to see a national outfit like core agree with whats happening on the ground..

If you can insure it for the cash value and still come out ahead if a total loss was to occur, do it.  

This is straight from CAR:"Any death which has occurred within a 3-year period should be disclosed if deemed to be "material."

Then it occurred to me one glaring problem.If i wanted to start using late fees and have it enforced automatically i couldn't do that thru the bank itself...ie have the bank say, "Oh it's after the 10th so you need to deposit rent + late fee".So now i'm thinking a call in system like most utilities use would be the best solution to this issue.

After a year, most will be settled and will either drop off your list or will be treated differently (under contract, litigation, property sold or distributed).It ultimately becomes a "pig in a python" effect at some point when lots of filings occur, so you need to be aware of trends, too.

@Brian Hoots@Joseph Bergman@Kevin HillWhat type of place does the Orland meetup occur?

If this is the point you want to make a purchase then you'd best research local legal newspapers to find the postings of property going to a trustee auction sale which usually occurs about 21 days before they put it up for public bids.