The basement has a few cracks, nothing that covers the full width/length of the basement walls but there is a noticeable deflection (about 2") on the East wall.

The brick walls and foundation all appear to be in good shape as long as the roof is repaired sooner than later.

A lot of towns have part time inspectors and only inspect maybe 2 days a week and usually you can't get electric, plumbing and Framing in one day - electric and plumbing first, then you schedule framing, then you schedule insulation and then you can close up the walls. if they only inspect a couple of day, that may delay you a week.

For the kitchen remodels, the cabinets are fine but need paint, and I want to take out the top half of one of the walls to open it up.

They said there is nothing wrong with the walls.

I had to round up all kinds of evidence like power company records (showing two meters and two addresses to bill), testimonials from neighbors who have been there a long time indicating there has always been "TWO FRONT DOORS", county property tax records showing how it has always been billed, floor plans showing back to back kitchens on either side of the kitchen wall, and pictures in the attic showing the common DWV for both is in cast iron which was typical back in the days of original construction, as well as two electrical panels and showing pictures of EMT conduits coming up from both in the attic indicating again the wiring was done back in the days when EMT was common practice. 

The broker would be very happy to have money coming in for the privilege of a wall picture.

Rogue Arc just did some work in my basement today repairing a wall. 

I have heard of foreclosed property with 2 lots not being foreclosed together, with the owner retaining ownership of the secondary lot.If I decide to make an offer on the property, especially with the HUD contract, how would I even make it contingent on getting that second lot?

It's way too easy to put in new cosmetics and ignore everything behind the walls and in the closets that needs updating.