At one point when I was there to collect rent, I witnessed a 50-something year old guy coming out of the back bedroom area, and when I confronted him asking "What the hell are you doing here?"

I see now the confrontational attitude, you're trying to impress while you cut a deal in the forms.

She became more confrontational, she NEVER returned my calls inquiring about status of past due payments and generally became very difficult to deal with.  

The downstairs tenant has reported this to me, and I have confronted the new girl and let her know that I won't stand for any bad behavior.

Few years ago I was confronted by a pit bull and I whipped out my can of spray only to find it had lost its charge!

I confronted her about her business and she said so long as she pay her rent on time and did not disturb my neighbor's peace it'll be alright.

Gurley suggested which is confront the owner give him cash for keys and then deal with the primary noteholder supposedly Deutsche Bank.?

Looking back at our other moments we confronted him, we were trying to be nice while laying out our terms with him.

I don't want to come across as confrontational, but the public needs to be made aware of the problem/fraud.  

My personality type is non-confrontational and not one to throw people under the bus in front of their face.Now I decide my next step...I'm not the lawsuit type of guy, and at this point, would want nothing to do with this property under seller-financing terms (he would make my life miserable).Considering asking seller for consideration, or payment, of some sort to avoid going the legal route while also avoiding me dragging this out by clouding title, etc.Definitely not making any quick decisions.