This is a sad story, I don't wish this on anybody. Having bought a house not long ago, I know what a complicated, drawn-out and stressful process it is. I can't imagine what's it's like to deal with a foreclosed property. The fine print is overwhelming, but it's there for a reason.
But, I find it a little disconcerting that people will believe and sign anything with such limited information, especially ones that pull at heart strings...