If you do a proper foreclosure and notify all parties a tax foreclosure can clear up an otherwise scrambled title. 

I found a seller who is motivated to sell his property at a pretty steep discount.My plan is to put the property in escrow on an executory contract/land contract with the condition that the title will transfer once the seller receives his funds.

This is precisely why everyone should insist on title insurance.

Even when the deed is recorded you will be unable to obtain title insurance for at least a year from the date the deed is recorded.

I struggle with that myself.Insurance broker - I can introduce you to a couple of great agents, but they are not on Bigger Pockets, so I cannot tag them.

We don't allow hard money lenders, only the sponsors (real estate attorney, title company, and my lender) and they don't pitch either.

Buyer wires funds for Step B to title company).

Could you gift the down payment to your mother in law so she can buy it and then transfer title to you when your house is done?

@Kay S.Assuming you are getting title insurance (which I recommend) the closing costs will be similar to a traditional closing.

However, with this in mind, contact the closing firm and ask for an escrow fee sheet to ensure that it somewhat aligns with the standard title/escrow fees that other closing attorneys offer.