Forecloser and now code violations are on the top of my investigation list tomorrow.

I'd encourage you to investigate what it is your gut is telling you.

He basically said they were down to three investigators for the entire county and that he won't get a chance to even look into my complaint for six-to-eight months.

And, back on topic, no, buying the note is not a path to ownership unless you can obtain a deed in lieu of foreclosure, and after investigating existing liens, you may or may not want to accept that deed.

I would say investigate the city you are in and make sure it is legal before purchasing. 

I also may be acquiring (free and clear) a property near South Haven Michigan (4BR, 3 Bath on 8 acres with private lake) that I would do as a STR.I've been investigating and I think a HELOC would be the best route as this first unit was purchased at 25K-40K below value and there is no mortgage..

You can investigate to verify the story.

I then contacted the company from the podcast interview and asked a bunch of questions, took a three day trip to Memphis to investigate the market and the company, was pleased with my findings and purchased a property.

I have 1 option (assume his loan and the price would be 109k) but need to figure out 1 or 2 other methods to present to him.Don't think that subject-to, using a land trust, would work, as he and I have both been in to speak to the local bank, and they would likely be suspicious enough to investigate (it's a very small town and there's not many RE transactions).

In fact, with most banks, I don't believe a fraud investigation process would ever involve calling a loan due...though it could very well involve legal action.That said, nobody here (as far as I can tell) is suggesting that anyone fail to disclose anything.