Are you using a real estate lawyer?
Is this house a duplex, condominium, town house, or in a community with a commons next to your house?
Is the person who says they own the property an adjacent home owner?
What do you know of the history of the house before the bank owned it?
I read your blog about this, too, and don't understand how it is that you have already spent thousands on rehabbing a house you do not even own. And you have already completed a loan for it?
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"There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid
http://kiva.org/invitedby/margaret2299 My octogenarian mother invites you to join her in making international micro-loans to alleviate poverty. It's cool!