A RE professional using a one sided contract will be harder to defend.

Earlier this year, I successfully defended a lawsuit from a plaintiff's attorney who sued my client and attempted to pierce the LLC's corporate veil in order to hold its own personally liable.

Not a concern, unless the foreclosure action didn't name the "new owners" as additional defendants, assuming the transfer was prior to the foreclosure action.

Not to defend myself, but just to clarify the information I give to BP readers, my answers are never based on emotions, or lack of evidence. 

We've got that covered.http://www.biggerpockets.com/forums/311/topics/198698-detroit-and-michigan--1-defender-answers-questions?

If you believe the matter might be covered by your title insurance, submit a claim to the insurer and allow them time to make a coverage decision and take actions before entering into any agreements that might affect the insurer's ability to defend your title. 

I think we'd be able to defend a valuation of $285k for the investment portion.

Since I'm genuinely baffled by some of your responses i feel the need to defend myself a little. i used a large company in a large metro area and paid over other bids because they actually promise they won't do stuff like what happened.  

@Alexander Friedman The basic motto of most insurance companies is delay, deny, defend.

If it's a long-term buy-and-hold, there comes a point when the worker adds more value to the deal than most of the initial down-payment.I'm not trying to defend a blanket 50-50 assumption on most deals.