Interviews with friends and family reveal you knew about the problems, believed these were exaggerated issues and did nothing.

This is not illegal, because those fees are technically available in the state from some hypothetical settlement services provider that you could hypothetically use (if you were hypothetically an idiot).And you see a nice sexy bottom line number that you find appealing, and pick your lender based in part on "lowest fees," as you did.Then, a week or two into escrow, the lender "discovers" the actual title/escrow fees (they naturally don't even bother asking for them until it's too late for you to switch lenders, and the appraisal is done, etc, because they don't **want** to discover the actual fees juuust yet).Because they quoted you "real" title/escrow fees upfront, and because a full thorough audit will reveal that the lender did not "discover" the actual fees until a day or two prior to you receiving the "updated" disclosure, no law has been broken and this is a lawful practice.I personally go the other way, and quote the most expensive title/escrow fees in my market for purchase transactions.

A websearch should reveal them.

I don't want to reveal my hand to early.Whats my best course of action in this situation?

If the place needs to be fully rehabbed, whats an inspection going to reveal?

Failure to report can result in extra interest and penalties...In my experience, the majority of folks who qualify for a preforeclosure short sale AND report and treat the income resulting from forgiven debt find the 'income' is fully or substantially exempt from tax.But, if an audit later reveals failure to report... the issue becomes more complicated than if it were addressed early on.

Banks commonly reveal their maximum bids here.  

if you don't want to reveal you will not be the end buyer, then transactional funding is your best bet.

Hey guys, So this question will reveal the newbie-newness that I still have but here it goes!

My client had a foundation inspection, which also revealed nothing of note.