@raul7,
Assuming U get the loan approved, and the house transferred to ur name I don't see what the problem is here.

The house might have been out for lelong before but as U have clearly pointed out, the "Agent/Owner" managed to reclaim it.

Once the house is transferred to your name, the banks will NOT be able to take it away from you because it's not their right.

@raul7,
Go ahead to apply for loan lah - U may just be sweating over nothing. Also, U said earlier the house belongs to the agent so why should there be a problem?

Just make sure U get ur name on the SPA to proof you're the new owner - that way the banks won't come after U even if the other fella's owing the banks loadsa $