If I call BNY Mellon with the property address, would they or could they consider selling it to me (for a discount)?  

They have a nice ad stating how they buy well under market and bring buyers great deals with big discounts, etc.

Then find your price range.2, Learn how to analyze a income property, put in your living there as part of expense, and see if it will lead you to where you want to be. 3, If you can find a good discount property, you earn equity from day 1 and that will help you to get your goal faster.4, I think a duplex is surely make more sense based on your goal.

That's all that anyone cares about.The bank is already eating a bunch of money, you are already buying a discounted property, and you'll get precious little sympathy from anyone involved.Remember that this has been ongoing for 6 months, the property will have appreciated in value a bit, the bank really won't play hard ball.

Since the first $16,000 is NOT in dispute, base you deal and discount on that number and treat the remaining disputed principal gray area differently. 

All I know is he called me twice and left two voicemails about selling & still asked me to come look at it after I told him I'm looking for discounted properties.

I agree, it is very difficult to find discounts of 70% or better of ARV at this time.  

You need to find property owners that are willing to sell to you at a steep discount. find the deals and the buyers will find you.

They offer a ton of great member benefits beyond the networking and education like a passport unlimited card (Google this), Home Depot discounts, Sherwin Williams bi-annual rebates, classes, weekend seminars/work shops and the list goes on.

He's very realistic on the value, and is pricing it at about a 15% discount due to the long closing.