Buying a legally void foreclosure from Fannie Mae Homepath
I recently found a very good foreclosure on Homepath.com, submitted an offer which was accepted, did home inspection, and then found out that no title insurance company is willing to insure this property because all foreclosures in Massachusetts are pretty much void because they did not comply with the correct notices for one reason or another, and also foreclosing banks often did not even have the papers showing they have the right to foreclose in the first place (they lied about it in court to get through this routinely, but eventually judges stopped letting them do this). I am wondering if anybody has bought a Fannie Mae Homepath foreclosure. According to lawyers I've consulted, the previous homeowner has a right to get his title back, in Massachusetts, for three years after the foreclosure. The judge would literally transfer the title to the deed of the house back to him and I would be left trying to get reimbursement from the seller's title insurance company, which is saying it their underwriter has reviewed the case and does not believe the homeowner is likely to sue, and they are working to produce a commitment to issue title for me and the title policy after closing. Has anybody a) taken the risk and bought a property like this, b) had the previous get the title back in court from them and then were/weren't reimbursed by the title insurance company?
Thanks