Buying Foreclosure Property that has 2nd Loan

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I recently received a lead on a SFH in foreclosure. I've done my due diligence on this and the ARV on the property is coming in around $185,000 and The max I'm willing to purchase the property for is $115,000. The total Judgement due on the lien is $111,846. After coming to a verbal agreement for $115k the seller disappears for about three weeks. When she finally contacts me back she springs on me that she has an extra home equity loan for $32,000 on top of the total judgement and through a separate bank than the original. Through a title search we are unable to locate anything on this 2nd loan and if I am going to do this deal it has to be completed in the next 10 days.

So my question is, has anyone had any experience in a situation like this? I'm aware this may be a tactic by the seller to try to up her profit by a large margin, I'm just curious if this turns out to be a real problem, if scenario sounds fixable or if I should walk away from this one.

Thanks in advance everyone!

Agreed, did you get a Real title search, or searched yourself. Occasionally there is a misspelling in the borrower name when indexing in the public records, and searching by Name. You have to be able to search by legal description as well, like the title co.s do. 

@Tom Grimer thanks for the advice! I know this is seriously delayed, but it ended up going to auction. Unfortunately did not buy the property due to the auction price going well above what I determined to be the right purchase price for the property.