Ooops USDA mortgage not released at foreclosure! Options?

[Jake B.]

My first post after learning an extraordinary amount of information on this site.  

My next auction sheriff sale auction has 2 properties that it appears the plantiffs lawyers didn't do their homework on with easily identified mortgages not being listed correctly in the foreclosure judgements.  

I pay a title company to do this - 

Property A has an ARV of around 100k and a first mortgage that is foreclosing with a judgement of 30k. Title company identified that the plantiff's lawyers served notice to the Indiana Housing Finance Authority instead of the the appropriate party which they say is the USDA rural housing service. The Indiana Authority sent a release but the title company says they couldn't provide title to my buyer until this is cleared up. The mortgage amount is 64k. Their lawyer contacted the lawyers for the plaintiff and inquired - sells as is end of story was their answer.

Is there any recourse for a buyer of this property?   I'm wondering if anyone who did their diligence like I did will be scared off.  If there is an recourse to resolve that lien from USDA or if the USDA would have to redeem it for what I paid for it it may be worth a small risk if there is low no interest.  House is oddly enough in fantastic condition better than some of my current rentals.    

Property B has an ARV of around 85k and a first mortgage foreclosing with a judgement of 70k. They have announced their initial bid at 25k. The plaintiff lawyer also failed to list a HUD mortgage for $5,500 on the foreclosure documents. Assuming the lender doesn't buy it back (and they have let some go at less than their judgement recently) what is the recourse to resolve the HUD lien? Will they negotiate with me? If its cheap enough I could of course just pay the $5,500 but who wants to spend what they don't have to?

Any insight appreciated

Jake