Based on experience being in various tax assessment discovery failures by title companies, I have been able to exercise my title insurance on several occasions and has worked well, not instant but it worked.

There are things an owner or a contractor couldn't possibly see lurking behind walls, in the ceiling, under the ground until they start tearing things apart.So is the being over the bid related to the scope of work shown on the bid or additional discovery items upon rehab?

Best discovery ever since started investing.

I am always looking at investment comparisons and learning new things so this is more discovery for me at this point and possibly future planning although I already have a deep network of clients and friends into the nine figures of net worth.

You should have an attorney look into this during the discovery process.If each floor has two separate entrances and there other 2-flats on the street, it shouldn't be too difficult to get it properly zoned.

All of the self-discovery you did  you probably would have been better to have a consult with a zoning and litigation attorney early on.

It also includes any intentional act or omission that may cause a financial loss to the lender (a loan that is made and then upon discovery of certain matters the loan is no longer marketable as intended can create such a loss) regardless of such a loss being suffered or intent of a borrower or their awareness of such a loss to some extent, depending on those circumstances.

This property is pretty far out of the way though and it wouldn't be the most surprising discovery to find the owner who was foreclosed on never left.

I keep hearing I need to look for deals that aren't on the MLS but I haven't been able to discovery an alternative method for finding deals. 

This eventually led me to the discovery of real estate investing.