If you are the only one negotiating with the seller, and they are obviously motivated to sell, there are options to staying or delaying the foreclosure.

If anything it could indicate these are hyper delayed values today based on historical numbers.

Sometimes, a delay is caused by outside sources, say inspection, or city citation, etc.

Have you tried a delayed purchase? 

You must maintain the walking surface of your exterior steps and/or deck so as to minimize injury from slips, trips and falls by you or others due to weather or other conditions.

If you're willing, agree to put down the additional $50k, but you get the option to extend a certain number of times if your lender delays, but for each delay you'll put down an additional $xx,000 deposit.

I created a property management business with partners, my income is on the minimal side because the partners and managers take all of the heat.  

I suppose it can go as far as ending up in court, etc, possibly causing closing delays with another Buyer, but I would think the Original Buyer may be held responsible for any damages their delay may have caused the Seller.

You will lose the money that you pay on the tax lien, but you will get back all of your overage as well as the interest that was due to you thereby minimizing any loss.  

If you can sue in small claims court without benefit of an attorney at minimal time and energy cost, it's worth doing just to document what's happened, that you have some sliver of collecting, and protecting future landlords who check on these things.