Here in CO, you could start eviction procedures 11 days (IIRC) after the sale, unless the PTAT act was in effect.They may not need an attorney for the closing, but sounds like they do need one for foreclosure laws.

Again, seek legal advice from your attorney or the legal aid office and follow all the rules to the "t" so that you don't have to pay unnecessary fees or start the process over because you missed something or didn't follow a procedure correctly.

What is the procedure to pay the taxes as a new loan to the borrower?

The listing agent should be able to go to the servicers and explain why there is a delay and ask them to extend the date on the approval letter and then you and the seller signing a closing extension.There has to be some procedural hurdle that is holding this up.

Following proper legal procedure is imperative. 

Process > Procedures > Workflow > Accountability to yourself places a big part in your investments.

I am fearful that they will have to amend the mortgage to contain the proper legal description of the property and re-do the entire foreclosure procedure with the correct legal description.

Assuming you were dealing with the same bank that foreclosed, if you had a deal, the bank should have been able to stop the procedure.

What I am looking to do is invest in property for the same reason renting it out as airbnb but I need to guarantee that I'll have a good return at the same time, also more information in the procedure in buying a unit.

I like 10 year fixed debt because you have almost a full average cycle period to decide at what time you want to sell or refi a stabilized asset.I do not believe in massaging debt with 3 to 5 year lower rates just to make a property pencil.I have bank lenders that act like CMBS but are not CMBS so you save on legal costs but they will do in many cases 10 year fixed in the mid 4's at 65% to 70% LTV with a 30 year amortization schedule for retail center properties and 100% non-recourse.