3 Part Private Lending Question

[Vanessa Blais]

Ok, here's the deal... ARV is $120K on a 4BR,2 BA 1 Car Garage house in C- neighborhood. I've got it under contract at $47K right now. Monday morning, title called to tell me not to bring in the escrow money because they can't clear title for 4 years due to owner having purchased property at a tax deed sale. (We are in Florida, and house is in Pasco county, title co in Hillsborough County).

Question
Part 1- Seller says he does these all the time and all I have to do is close without title insurance and then file a "Motion to Quiet Title" at a cost of $1,000-$2,500 and 2-3 months.  (I've been through a motion to quiet before and it took two years but that was in large part because I let a really crappy lawyer do it).  Has anyone else ever found a private money or hard money lender that will fund without a clear title in situations like this?

Part 2- I have been contacted through a REI group I admin on FB with an offer for funding on deals, and I brought this one to him and he offered me just a little over a 65% LTV ($80K,) on the deal. BUT... he's got no website, no license as a lender (he's in Washington State, so I don't know if it's required to be licensed as a private lender there, no 1033 just the shortest application form I've ever seen that doesn't even ask for my social, just my driver's license number and a copy of my DL, and all no doc... no bank statements, no tax returns... no credit pull? Verification of income is done by asking me my supervisor's name and phone number at my work, (or name of accountant).