Foreclosure bank cancelling contract saying they must now re-foreclose?

[Dustin Stubbs]

I've been in contract for a foreclosure home on a lot for appx 18mo now. Closing has kept getting pushed back due to the bank foreclosing on the incorrect parcel.  The foreclosed owner had 2 parcels.  A vacant lot of appx 2 acres and an adjacent lot with a home and 2 acres.  The bank mistakenly foreclosed on the vacant lot but likely because the parcel ID says "And or Except" which could have been misread.  

The Listing agent advertised the 2 acres with the home.  I won the bid but also felt confident the foreclosed owner had likely refi'd or combined both lots for property tax savings based on the property history i researched.  

I've followed the foreclosure court docs and see where the bank filed an adjustment to the parcels in the foreclosure case.  The adjustment request is to include "both parcels" (which i figured the bank intended to foreclose on both parcels).  

I was just notified by my agent that the seller/agent is requesting to cancel the contract claiming they must re-foreclose. In fact, the Termination document they request I sign says that: "The Buyer hereby notifies the Seller that they wish to cancel due to seller title issues" thought I would post here first before reaching out to an attorney and see what the thoughts were.