Without seeing it i can not be postive , but most likely it is what the bank paid at foreclosure auction to purchase the property back. The price could be anywhere from what that former owner owed to 80% of the balance depending on state law. Once they take the property back, they then place it back on the market at or below market price which is usually lower than what the former person owed. What the person owed or what they bought it back at, has no affect on what they will take now.
You need to have your agent or you yourself assess what that house is worth in todays market and base your offer on that. dont base it on what they owed or what the bank is asking, you dont know if the asking price is at mkt value, below or much above market value. good luck with your offer.