Keep in mind that proof would be needed that the Broker withheld a material defect 

Bedbug infestation probably does fall under that category and normally the landlord has the duty to provide a house that's free from such defect. 

Bear in mind, the defendant has only 10 days from the auction to file this and must Show some defect in the foreclosure process.....not “I was victimized” or “I didn’t receive a notice/summons because I moved”, “I want to do a short sale” or “etc,etc,etc.”.  

[No coverage for] Water below the surface of the ground including that which exerts pressure on or flows, seeps orleaks through sidewalks, driveways, foundations, walls, basement or other floors, or though doors,windows, or any other opening in such sidewalks, driveways, foundations, walls or floors;...Wear and tear; marring; deterioration; inherent vice; latent defect; mechanical breakdown; rust; mold;wet or dry rot; contamination; smog; smoke from agricultural smudging or industrial operations; settling,cracking, shrinking, bulging, or expansion of pavements, patios, foundations, walls, floors, roofs orceilings; birds, vermin, rodents, insects or domestic animals.

Somebody wanting to sue for you backing out of a bad deal or accusing you of selling them a property with defects like unknown termite damage).

Sellers may see this as beneficial to themselves, and believe that buyers will build these pre-disclosed facts into the contract price (and thus sellers may be reluctant to provide any credits for these defects).The buyer elects to perform inspections on the property as agreed upon in the contract.

Petition the judge to issue a "stay" based on defective foreclosure.

I have a number of occasions where the specialists identified material defects that the general inspector missed.

.- “Landlord is required to supply at all times during tenancy…a unit in a clean and safe condition and the premises in a habitable condition…"- "Uninhabitable - ...Defects or conditions ... unhealthy such as cockroaches or mold..."

@Jay HinrichsFor sure a title claim — either covered risk 1 (title vested other than shown on schedule A) or 2 (defect due to fraud or forgery).