Be very careful, as this home is most likely a short sale and while you could get the highly motivated seller to agree to a purchase price, you also must get his lender to agree by May 30 (you must close by June 30). If the seller's agent is not experienced in short sales and/or is not using a good third party company you could be left in the cold after the June 30th deadline. While the seller may be highly motivated, his lender may not be, particularly if the home has already been under contract at close to the current list price. Your agent needs to thoroughly research this property before you go any further.
here is a link to the loan description
hope this helps!