realtors listing REO properties ..has it been uncovered???

This is a fatal flaw in the NMLSR system.

The key is to get most of it right and have a contingency clause in yoru offer (inspection period) If you uncover some major item missed in your initial walkthrough, you can back out or re-negotiate, no harm, no foul.

That logic is significantly flawed.

To my delight, the current owner revealed that she removed a board on the second floor and uncovered the old staircase to the 2nd floor!

I think you have a typo in the first paragraph and you owe the HML $52.5K, not $56.5K.But there are two major flaws in your scenario.

This judge usually likes a really clean case before confirming so I am hopeful the sale can be set aside.I contacted the foreclosure data service I use to tell them they might have a flaw in their system if this can happen without them knowing.

Welcome to BP John Donovan, lots of great stuff to learn here at BP, just start seaching in what ever interest you and see what you can uncover.

After some back and forth ended up settling on $850k.The inspection then uncovered more issues I wasn't aware of: roof needed to be replaced, drainage clogged, some wood root in a few places, a lot of the exterior lighting was non functioning.

, and then as you said in the podcast playing the numbers, being consistent that some of those high equity position houses will uncover motivated sellers.Thanks and keep spreading the enlightening word, definitely was a paradigm shift on how I see real estate investing.