Well if it was me I'd get an attorney, there looks to be some sort of profit you can make out of it which could be much greater than the attorneys fees you'd be charged. Honestly it's going to be tough for you to get advice from layman's because any advice that would be given to you would be legal advice, and unfortunately one could be sued for giving you legal advice that turns out to be damaging. I'd look up real estate attorney's in the city/county that the home is in, perhaps first with the title company's legal department that issued the title insurance for a good recommendation, or see if they have any input on it.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states