Also, no title insurance is offered

I know in my state it is customary for the seller to pay for a title insurance policy, and I'm sure it's customary in many other states as well.

What I suspect they're saying is that they are not going to pay for that title insurance. It would be up to you to purchase a title insurance policy. And I'd highly recommend that, particularly in a foreclosure situation.

If you can't get your own title insurance, I'd consider that a deal-breaker. Or at a bare minimum, it would require a substantial discount from what would otherwise be a fair price. VERY substantial.

--Peter