Or it could be that he knows of a defect in the tax foreclosure.

The attorney who handled the foreclosure had already been made aware of the title defect and has completed the corrected title work.

It’s a good thing your service was defective :)

That said, we don't understand what the instrument or origination event looks like, which could have some defects which warrant a steeper discount, but we will stay optimistic.

The defect there could be fatal for the loan or maybe it is not.  

I've found that nowadays the price paid on auction property does not properly discount the property for the likelihood of latent defects that an investor won't be able to find out about until after committing to a purchase. 

But based upon the limited information presented here, the burden of discovering this defect before settlement would typically fall on a buyer -- who unfortunately chose not to get a survey.Pull your owners title policy.

I know in the building of new construction we pay a ton.. and we do need it for builder defects etc.. even then.. we simply fix the problem and don't let things get out of hand..  

If you have some defects in your file you still could land up north of 90%.  

Just like an operation making widgets, you should have a plan to cut costs, improve revenue streams (productivity) and control for defects (quality) in your RE.