The information on subto is outstanding.

The state Realtor association has a fine legal hotline, whose advice I bounce off of the advice from the excellent Prepaid Legal attorneys.Sharon gives outstanding advice on this topic.

Outstanding!

If they have outstanding balance due on current month's rent you'd have to prorate balance from date you took over.. no late fee unless the prorated part is  not paid in three days.. 2. you schedule inspection of unit within a week or so of ownership and give copy of condition sheet to tenant, take photos'3 you have to follow original lease tenants have,, if no lease then they are considered month to month so all notices would need to be given prior to the first  of month for any non-renewal lease termination notice.4 Download you state landlord tenant laws..5 your real estate agent should be more on the ball.. and have told you this from the GET GO

You should have reviewed all of this upfront and had the foreclosing bank post foreclosure agree to cover all of those outstanding amounts to extinguish any liens before you closed.I feel for your situation as it sounds like you are both very inexperienced with these types of properties.I hope the property wasn't valued at 100,000 in perfect shape and you bought for 80,000 etc. 

I started attending Capital REI because it was launched by some BiggerPockets members who are outstanding guys and investors (Roger Lin, Justin Pierce & John Rubino). 

It had no meters, no electric, no water, no gas - plus outstanding expired permits from 2009.

That "projected" $50k over you say they are, could be because that is their required minimum due to extenuating circumstances...like an outstanding debt on the property.Do you guys have any tips on how to break through to the seller?

Yes, as long as they can pay off the entire outstanding balance including interest, fees, force placed insurance, court costs, etc.

The Building Dept/Zoning Official, etc, could also fill you in on whether they have any outstanding issues w/the property (any cease-and-desists, blight complaints, whatever).Good luck!