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It is unfortunate you stand to lose your inspection costs. You should speak to an attorney regarding the issue as you certainly do not want to purchase a home with a defective title. On the other hand, the lender may be willing to avoid the time and expense of another foreclosure and might allow the purchase direct from the prior owner.I have read that HUD is having to redo all foreclosures in Michigan due to the MEARS ruling in that state.Good Luck!
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