The foreclosure stuff is interesting. I don't know how she would be able to buy a house with a foreclosure on her credit. I do know that it can take a couple of months for things to actually show up on a person's credit report.
RSBM...
It may not show up on her credit report, but every time I've gotten a home loan, they ask on the application paperwork if you have had a home foreclosed on or something to that effect.
I just dug out my loan application for one of the homes I own now and under Declarations, it asks, amongst other things;
Are there any outstanding judgements against you?
Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?
Have you directly or indirectly been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgement?
Blah blah blah...if "Yes" provide details, including date, name and address of lender, etc....
Have you had an ownership interest in property in the last three years?
Then of course you have to sign that all of the above is true and that misinformation can result in criminal action and whatnot.
I cannot imagine that she would lie on that form. From all we 'know' of her she was a good upstanding citizen and a smart cookie to boot. I also honestly believe she was smart enough to read all of the terms, etc.
Another point someone made above is a good one. I cannot see any lender giving her a mortgage on such a high dollar home if she had recently or even within the past several years defaulted on a mortgage. Heck, a family member defaulted on an almost paid off truck a few years ago and cannot now even qualify for a loan for a motorcycle and that is for a whole lot less $$ than this home.
I am thinking there is either some kind of mixup here regarding what was found about the homes.
As always, MY OPINION ONLY.
P.S. I just love you guys/girls here. As I am disabled with a chronic illness, I don't get out much at all, and this place stimulates my mind in ways that are interesting and fascinating to me. I told my husband again this morning...."If I go missing or am murdered" get on Websleuths immediately. Reach out to someone on there who will open a thread on me. They will get to the bottom of it! Who wants to volunteer to be a contact person for him? HAHA