I am looking for recommendations for Mac compatible software that will help us with this.  

I bought a hud home for cash to resolve an hour commute I currently have for work.  

.- Will I be able to get a loan even though this is NOT resolved with the IRS?

If these weren't deals with a lot of title issues to be resolved, that's just nuts.  

There is a signed contract with both parties suggesting this is the case per the lease.I told my dad at this point, dont sign anything new but just keep following the terms of the old lease until we get it resolved.  

@Trevor S Foster If the comp at $257k is your ARV, you're already in the low $230ks after closing costs and agent commissions when you sell.. throw the cost of a full rehab plus your expected profit in there and.. you get the idea. 

Lawyers cost a lot of money and trying to resolve this in a more effective way.  

If you combine this with digging down and sealing the outside of the wall as Account Closed suggested, I would guess that would resolve the issue and prevent additional leaks from starting. 

Send a letter of noncompliance, give them proper notice, whatever landlord/tenant laws allow for fixing a break in lease terms, x days to have problem resolved and re-inspection date, and let them know that any cleaning or damage related to animal in house will be charged to them and not considered normal wear and tear as you have a no pet policy.  

All problems are fixable and as a investor I would have made a better deal and resolved the problem to my advantage.