But the ones with title defect they did the same thing.. 

There is defect liability (CA law and case precedent) but there is very little attorney driven legal action as we don't have an HOA.

Even if title is clear, a defect in the preceding foreclosure or even tax sale itself can cause problems.

Being the highest bidder really means just that, you just paid too much.What will you do if you purchase defective collateral?

For those unfamiliar:  WiKiLean Six Sigma is a methodology that relies on a collaborative team effort to improve performance by systematically removing waste;[1] combining lean manufacturing/lean enterprise and Six Sigma to eliminate the eight kinds of waste (muda): Time, Inventory, Motion, Waiting, Over production, Over processing, Defects, and Skills (abbreviated as 'TIMWOODS').

Look at time on market and any listing 2-3 months on market without major defects(including location) is overpriced.

If you sell your property and then it's sold again and again and the fourth owner down the road discovers a defect and sues his grantor for a breach of the deed warranties and that grantor sues his grantor who sues his grantor until they get to you, you're still an insured so you should submit a claim to your title insurer. 

Also check out the Milwaukee Dept of Neighborhood Services website - they are the ones who will conduct at a minimum an exterior inspection after you buy and will require you to comply with anything they consider a defect. 

My client had one she REALLY wanted, but the home inspection found so many defects and sub-standard repairs that we backed out and bought a new one.

usp=drive_link)3rd party inspector, with 40 years of direct construction experience, who does no work for us other than inspect work compared to contract/scope, hired to inspect work along the way, as is standard process.A&M failed every inspection, with Defect Notices sent stating issues found and given cure time to remedy, as contract required.