I have done some research on the property and outstanding debts.

But that is another issue...The only properties I have bid on (and lost so far) are those that I have verified through title search to have NO outstanding first trust or other secured liens.

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

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?

Paying off this outstanding loan will allow me to increase a HELOC on my primary to about $50k that I want to use part of for 20% down and minor rehab on another rental.

If the tenant leaves with an outstanding balance, I can apply their deposit to that and/or take the tenant to court.

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!

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). 

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.