The brother is putting 150k on the transaction.

So I'm thinking instead of using transactional funding saving me quite a few dollars I bring the boss on as an investor.

You can call the person listed in the auction notice and often this is the lenders foreclosure department or attorney.

Find a local investor who has done several successful Sub2 transactions and get some advice and counsel.

I am NOT an expert, but it would seem to me to be treading very close to a prohibited transaction.  

Only thing that is a pain is having separate accounts and transacting through that.

The problem with general price inflation greater than 10% no rational entity would commit money to loan when economic conditions rendered his transaction a certain loss.  

What you might do is go down to your local building and planning departments and research what are called property set backs and check out the zoning for the lots.

;)  Word has it that Bank of America has "acquired" those properties from TBW, but of course, this property isn't listed anywhere, and BOA no longer has any phone communication with their REO department.  

I suspect you have not learned real estate yet as that question of which comes first would have been known.First, learn real estate, then look into lease option to purchase transactions, Sub-To and such.