Need Advice On First Potential Deal w/ Title Issues

[Chris Nwoke]

After doing some searching, I ran across an ad by a motivated seller. His asking price is $60K for a 3 bedroom house that needs $30K in repairs and has an ARV of $160K. From what I can tell, this sounds like a good deal for my potential end buyer and myself.

I'm trying to tread softly though and make sure I make the right moves. According to his ad, he wants to get rid of the house, but also needs to clear the title. Technically speaking, he's selling the home for $55K. The additional $5K was added to pay a lawyer to clear the title. He says the original lender tried to foreclose on the house, but they went bankrupt and that fell through.

I'm wondering how I should go about this. Should I tell him that the title company will handle this at closing? Do they handle these type of things? Is this something that my end buyer will be responsible for? Or does the title need to be cleared before any moves can be made?

Sorry for the crazy amount of questions. I'm just excited about what could be my first deal and nervous about making a mistake that'll screw everything up.