Just to make sure..... verify that the legal description in Your purchase matches the legal description in; the foreclosure action, the original mtg from the previous owner, and in the deed where the previous owner purchased.Surveyors rarely make this kind of mistake, but that is also possible.If all the previous legal descriptions are the same, dating back to when the house was actually built, are we to assume that whoever built the house just “guessed” at where to build it?

I'll have to talk to my broker about getting pre-approved.

In addition, if i were to find a bank that offers this package, what kinds of hurdles should i expect to encounter before loan is approved (e.g. appraisal, state/local ordinances, etc)?

Do you sell homes, if owner wants to sell, at what point to do call them for approval, what about emergencies,  Make sur eyou have a trust account, so there is no commingling of funds.

Being upfront and polite about this is your best weapon.I can't speak to the legal aspects of this, but i would assume they have the right to tow.

I've been working with a firm that offers legal services to real estate investors for close to a year now and have slowly become a convert to the idea of real estate, looking to dive in personally and build up a portfolio over the next several years (I am living in northern Minnesota.)Other than second-hand experience I don't know anything about real estate.

I suggest you go back to him asking about legal fee dollar numbers.You need also to specify the capital gain number.

If you choose to do business in a state without an entity, such as an LLC C-Corp, or Limited Partnership,then you’re doing business as a sole proprietor and are given no (legal) protections if something goes wrong.  

The approval is based on credit, cash flow of the property and loan to value.

SBA does not lend directly they only lend through approved banks and for real estate purchases SBA requires the loan to be provided only where the building will be at least 51% occupied by the "business" getting the loan.