We are getting ready to purchase our 2nd flip of the year this week. The title company sent out an email yesterday saying they found some issues with the foreclosure and there were some unknown spouses that were not named in the foreclosure. They are in the process of trying to obtain a Letter of Indemnity (LOI) from the firm that did the foreclosure. If they can't, the foreclosure would need to be reopened to name these other people.

I did a little research on what a LOI is and I'm concerned that if we go that route we will have issues when we go to resell the property again in a few months. We spoke to the lawyer at the title company we typically use (not the title company doing this deal) and he agreed that there could be some potential title issues when we go to resell because of the LOI.

Does anyone have experience with this?  Are there any other options we can pursue? I've seen people recommend doing a quiet title action but I have no idea where to start with that.