Hello BP,Whenever you find an FSBO property and you are able to negotiate seller financing with the seller.

Since it was foreclosed, the bank takes no responsibility for the state of the building so if it turns out there is major deferred maintenance, you may not be able to get FHA financing and the bank won't negotiate or do repairs beforehand so you will be out of luck. 

The lease stands and you should negotiate with the distressed seller prima facie. 

If you already have the Property Under Contract, Comparable Sales Data might make you feel better, but I doubt you'll be able to go back and re-negotiate the deal, absent repairs of any significance. 

Chapter 13 involves negotiating down debt (credit cards typically are 10 cents on the dollar) and paying it off over a 60 month payment plan.

How much you make depends on how well you negotiate.

2) Are turnkey prices negotiated similar to regular buyer-seller market, or it is generally a fixed price from the provider?

I was also in the same situation and with some negotiation with tenants , they agree to pay $25 additional for rent each month and $500 Non-refundable fees.As for viewing your Tenants as an intruder..

Remember in real estate everything is negotiable if they say we can't do that.

Obviously with this kind of price there is no way any lien of this type could be paid off unless it were dismissed or negotiated down.