I would be suspicious of anyone selling a turnkey property for under market value.

I've generally been a bit suspicious of what they claim, though really can't back it up with hard evidence.

They had it listed for sale a few years ago and it never sold even though it was for a suspiciously good price.I used ASRIS, Zillow, Trulia, Property Shark Etc... which some I pay for and some I dont.

This sounds suspiciously like the relevant guidelines for when you want to have two FHA loans at once...

I am always suspicious about things like that when fees are being charged for services that haven't hit the main stream, but, seeing is that I am new to the whole marketing aspect, and can't make a financial commitment until September anyway, i am trying to absorb all of the info I can.

But large amounts of cash changing hands will result in suspicious transaction reports being filed by the banks involved.

I'm strongly suspicious that the seller is under-reporting expenses.  

There could have been other contingencies besides price in the other offer that made it more attractive to the seller/listing agent/bank.Also I don't doubt there could be some corruption involved with the listing agent giving inside knowledge of counter bids to a preferred buyer agents.I've lost a couple foreclosure bidding situations under suspicious terms.

You have to spread these out over 27.5 years however (suspiciously similar to a common mortgage term).

Would be suspicious if the squatters were enjoying the scent of Yankee candles.