Often the mortgage holder buys the property back at the amount they have loaned on it, in this case maybe it was $119,000. The house might only be worth $80,000 and the bank knows it and might sell it for 79,000. Wait to see what they list it for and offer something close to that. Find a Realtor to work with because it will be listed and you have to have a Realtor to buy it. They will guide you to the fair market value and the bank will have appraisals done to determine a fair price. If they are going to lose money, they will not want to lose any more than they have to.