This is not a legal question, though the questioner would be well advised to talk with an attorney regarding the different types of policies being offered by a broker since brokers are agents of the insurance companies whose products he/she is licensed to sell. I own two LTD policies, and I researched the underwriters and terms/conditions vigorously because there can be some wide variations.
You need an attorney who, of course, understands contract and consumer protection law. But perhaps more urgently, you need an attorney who can write a persuasive letter on your behalf to explain why the "school" does not want to wage a legal battle with you and why it's probably in their best interest to adhere to the time-honored rule not generally taught in law school, which is the customer is always right.
Lenders collect payments on Notes, not Deeds. Mortgages are documents executed by owners of property to secure their obligation to repay a loan. Lenders generally cannot collect money from someone who did not execute a Note. Lenders generally cannot foreclose on properties owned by a person who who did not execute a Mortgage. I am not sure if this information sheds any light on your situation, but feel free to post more information.
Your question seems to be whether the foreclosing lender will issue a 1099 in your name, thereby obligating you to pay income tax on account of forgiven indebtedness? The answer is *probably* not, but there are some precautions you can take, with the advice of counsel, to push that likelihood toward zero.
If the sale proceeds are sufficient to pay off and satisfy the mortgage that is in foreclosure, and the seller can otherwise can convey clear title, then the buyer should be careful about cancelling the sale because the "fraud" may not have caused any actual harm. Perhaps there are more facts as to why the non-disclosure has posed a problem for the buyer, but if the buyer cancels without just cause, the seller may attempt to retain the deposit money under the Agreement of Sale.
The question needs more detail about what type of taxes are sought to be minimized or avoided. My assumption was transfer taxes, but the questioner seems to allude to something in addition to transfer taxes. If the goal is simply to avoid state and local transfer tax, then the questioner should consult with a real estate attorney concerning the various exemptions which may apply to conveyances.
The answer to your question is yes, try to connect with the bank's attorney. In addition to the helpful tips from Mr. Carey, check the docket in the foreclosure action to see whether the borrowers put up a fight. Vacant properties can be winners, but that also means they've been neglected. Occupied properties can be winners too, but you may have to throw some cash at the former owners in exchange for a peaceful exit. Be careful about properties occupied by tenants. If the lease pre-dates...
I agree with Mr. Lutz, although his analysis presumes that you were a co-obligor on the debt, not merely a co-mortgagor. If you're a co-obligor, then you should consult with an attorney about your rights under the divorce decree. You may have recourse against your ex if she has breached the decree and thereby harmed your credit by failing to refinance or sell.
You should probably retain legal counsel to write a letter to the contractor. The letter should enlighten the contractor concerning the Pennsylvania Home Improvement Contractors Act and the Unfair Trade Practices & Consumer Protection Law. You should also get a double-sided image of any checks you wrote to him so you know who or what entity holds title to his bank account(s). If a letter fails to elicit a response along with your refund, I am afraid that filing a lawsuit may be your only...
The answer to your question is that no one can stop you and the co-owner from signing and recording a deed divesting you of your ownership interest. Although, as astutely noted already, there is probably a due on sale clause in the Mortgage; however, if the loan is kept current, the bank would probably not seek to enforce it. Unfortunately, if the bank will not release you from the debt, that will absolutely affect your ability to secure other financing. The only way to make that happen...