It had 2 foreclosure actions on it - one in 2009 and one in 2010 - both for sheriff sale auctions and both were cancelled. 

Hi,Just recently my mother informed me of a foreclosure in her building for a $160,000 for a 2 bedroom apt. for sale which is being handled by Fanny May (not sure what this means, any explanation of FM would be greatly appreciated).

I would plan for the foreclosure scenario given that it is most expensive.  5K for foreclosure legal expenses + servicing fees and taxes over the foreclosure period (plan on 9 months). 

Hard to find foreclosures that are cost effective to rehab. 

Short history of the house is the original owner left it to her son he was in and out of jail and during that time there was some foreclosure process and the district attorney ended up with possession of the house.  

Hopefully you have investigated what those investors purchased those for, if there are foreclosures or short sale hitting the market, etc.

http://www.linkedin.com/groups/Buy-Rent-Foreclosures-3-Million-845877.S.200974428?

I am thinking about using him as a foreclosure attorney.

They will be involved once the property goes through the foreclosure process and is owned by the bank.  

You could then step into their shoes with a claim to the collateral and force the foreclosure as the second lien holder.