Two APNs, one foreclosure, second free and clear, same property

[Sergio Montoya]

GOOD DAY BP FAMILY I recently came across a situation that I have never dealt with before and was hoping anyone out there with similar experiences could provide some advise on how to proceed, or NOT. All advise is welcome. Thank you in advance and my apologies if post seems long.

Currently found a property (SFH 2/2, 1,468 Sq ft. Lot. Sq ft 5,399, built 1949) that was vacant for some time. Turns out the property is currently in foreclosure and has already been identified to go to auction 03Nov16. This particular property actually has two APN's. First APN is where the foreclosed home sits on, and second APN is mostly back yard and detached garage behind house. Owner of house passed away last year and the reverse mortgage is defaulted and equity is in the red -$7,477. The back half of the property (second APN) is owned free and clear by original owner's son (current executor).

The owner of the second APN is looking at selling his part of the property, now that the front property is under foreclosure, in order to recoup some money prior to the auction. He was hoping the bank would have paid his asking price for the second APN, but unfortunately did not entertain his offer of $60K. He is very motivated to sell his portion of the property and is willing to come down in price and sell for $15K. Mind you, the main house and first APN is still in foreclosure and scheduled for auction. I keep going back and forth on whether this might be an opportunity in disguise or an obvious nightmare. Apparently there is an easement on the driveway, as this is the only way to the back garage.

Exit strategy for this property would be to Fix-Flip, recent sold comps have been between 150K-175K. The front house is very outdated and would require about 40-50K rehab so acquiring at auction as low as possible would be key.  My concern is that if I purchase the back property for 15K, and I'm unable to acquire the main house at auction, would I be locked in a legal battle since I would now own the back APN or maybe forced to sell the back property for less than I paid for it?  Does anyone see an opportunity and or a worthwhile investment in the second APN? What type of strategy might I be able to employ? I currently see issues once the house is sold at auction and the new owner finds out about the second APN is not part of the house. I have even considered following and perhaps even making an attempt to bid on the property (first APN) at auction. Many questions and concerns, any and all advise is appreciated. THANK YOU!