The seller was a foreign landlord who was behind on a few years of taxes, and the property was in C5 condition at the time of initial appraisal.

Thank you Joshua for your detailed answer. what would you advice to a foreign investor to do once they come to the states ?

Military base housing allowance, foreign diplomat housing allowance,  collections far easier, guaranteed cash flow,B.  

All their Housing shortages are because of those foreigners.

We've been able to fund foreign nationals with absolutely no U.S. credit. 

I would talk to a mortgage broker in the US who works with foreign investors and can explain your options, but I would also definitely contact Canadian banks to see what they can offer. 

When not 'full income' verification, which can even allow for high 55%+ DTI there are alternative income verification guidelines like bank statement, P&L, DSCR, Foreign National, Asset depletion, bridge and portfolio programs that allow expanded ways for borrowers to qualify. 

I know in attorney states that is a very foreign concept the thought of transferring title without an attorney..

Several potential sources for foreign national lending. 

Many buildings in NYC are way below capacity because they were bought by foreign investors as a place to park cash, not as an income source.