As Rebecca Schore points out, this is a situation that is very typical. I am also confused when you say you have spent $25,000 in legal fees. Are you talking about the amount of money you paid on the trial modification? This is unclear. You may have a litigation defense/offense relative to modification fraud that a lawyer could pursue. I have also seen other homeowners mount their own campaigns by writing their Congressman, contacting the Attorney General's Office and other government...
No. I do not think you will be successful at modifying without assuming the debt. The other poster delved into that hypothetical, so I won't go into it further. Bottom-line, it is not likely to happen, so you need to look at other options. However, see the end of this answer where I explain why this may become important.
I do not think the lender will modify the loan without your assumption of the debt. Right now the bank has a right to the collateral. However, suing an estate is...
You should still file anyway, for a plethora of reasons. It is important to keep a clear and consistent tax record, especially if you are a sole proprietor or contract laborer who does not earn W2 income and may need to file estimated tax payments in the upcoming year.
As the other posters have indicated, there are benefits to utilizing a single-member LLC and to utilizing an S-Corp. The main difference is how you pay yourself. With a single-member LLC there is only one level of tax and you need good bookkeeping to track your pay. However, just as with an S-Corp., you can use a payroll service with an LLC to pay yourself a reasonable salary. Payroll taxes are about 15.4%. With the S-Corp., you only pay the employer portion of the self-employment tax, so...
This is one of those situations where you won't know until you go forward. A lot of times, the first to enforce their lien gets paid off first, but since you have a tax lien, that trumps everything else and will be paid first.
You probably need to submit a letter to the Court informing them what the legal fees are and have the attorney fee award reduced to a judgment. You should simultaneously serve this on the landlord and send him a separate letter asking if he'll give you a credit for the amount of fees claimed if you will withdraw your claim for attorney's fees. If you agrees have him reduce that Agreement to a signed writing.
Challenges to personal jurisdiction can be powerful but are not really applicable in most states for real estate actions. If you own property in Florida, you are subject to jurisdiction there. Moreover, if Florida law is anything like New York, simply filing an Answer and Affirmative Defense is submitting to jurisdiction.
You should consult with a local attorney to get a more nuanced answer under local law.
Who is your employer? You usually provide the W-4 to your employer. If you google the W-4 form it comes right up, but you are right that it is the 2012 version. I've attached it for reference a draft of the 2013 form. The IRS has probably not released the updated form yet as a result of the changes to the payroll tax that have just occurred in the fiscal cliff legislation.
You need to consult with local counsel. You may need GA counsel as well. You may have a claim against the trustee. I'm not sure from your question what the mortgage situation in GA is. You should get a local attorney to ask formally for an Accounting from the trustee and investigate from there.