This is another stupid bit of legislation that is designed to make lawyers rich but sold to the public as “consumer protection”
Depending on how the law is written, the net effect can be to drive investors away from foreclosures thus ENSURING that homeowners in distress will go to foreclosure rather than sell a property to an investor.
Another negative side effect is that the banks will have a glut of vacant REO property driving down property values and attracting crime.
I sure wish the government would get out of the way and let the market clean up the mess others have made.
To mitigate your risk of having to pay back this money, get one of the realtors on your team and have them list the property on the MLS or which ever system your realtor uses. After you have placed your offer with the seller then have your rrealtor change the status to under contract. Close your deal and everyone should be fine. You have only 1 realtor fee to pay.
Do you have some insight as to the issue at hand here? Without knowing what the underlying issue here is, I don’t fully understand what your suggestion accomplishes. Can you provide some further information so I can make the most of your suggestion.