Foreclosure Duplex in Kansas HELP!!!!!!!!!

[Jeremiah Johnson]

I have stumbled on a deal, but it keeps getting more complicated and it is making me nervous.

Duplex, ARV 135, Rent is 1400 total currently and market is 1700.

Seller is 6 months behind and it is 14600 to cure the loan. PITI is 1021 and the payoff is 91K. If I pay the cure the remaining balance is just under 80K.

I offered a subject to purchase at 104,000 purchase price seller finance originally not knowing they were in Foreclosure.   After due diligence and negotiation I found they were 6 months behind.  I then offered to cure the loan, and subject to purchase, with the difference for 20% down paid at refi or purchase.  All was going well until the seller called their bank to ask permission for the subject to.  Now the red flags have went up with their lender and I think they will call the note due.

My council has suggested a contract for close in 12/16 and the cure as earnest money and deposit.  I was good with that, but after doing the title search the seller has a second that is 3400.  They claim they didn't think it was tied to the duplex.

I have copies of the leases, tenants are current, it is in a desirable area.  I don't think they have other options, and I am tempted to offer to pay the second and cure with me taking all cash flow moving forward and no additional money at close.  That would be a total of 18K down + closing cost at the end of the contract or prior too it.  Cash flow with her note will be 400/mo minus any maintenance.

I have ran this through multiple calculators and it seems to be a good deal. Just a ton of moving parts and the seller is pushing to close quickly.  Any insight would be very appreciated as this would be my first foreclosure bail out and it is making me nervous.