I am a newbie, and the first house I am looking at to purchase is a turning into a complicated one. Here is the story: Any feedback is welcomed :)

I live next door to a foreclosed residence. From what the neighbors have told me, it was foreclosed on 5 or more years ago. The city tax assessor has The secretary of VA affairs as the deed holder. The house has been vacant in this time and is becoming run down. I am interested in buying it at low cost to fix it up. Since its been foreclosed, no taxes have been paid to the city. And they are paying yearly for yard maintenance. They cannot get anyone at the VA to look into the matter or take responsibility. I spoke with the VA asset company that handles all properties and even the lady told me that they have only been managing the VA accounts for 4 years and they wouldn't have any record anyway. I call the VA directly and they point me to the same asset company. The house is now being scheduled to be demolished by the city. And speaking to the mayor today (small town), he knew all about the property and said that if the VA doesn't release it, then even after the house gets demolished, they cant sell the property and they would still have back taxes and yard fees to handle. Since I asked they are putting off the demolition for another 90 days so they can now try to go the route of getting a quitclaim deed signed. Has anyone ever heard of this??? Is there anything I can do to get something to happen with this?