In order to make an offer on a HUD home, you must have a HUD certified Buyer's Agent representing you:
They will guide you on the in's-and-out's of a HUD purchase.
From where I stand, (400 miles away), you would be wasting your time by offering $25,000.
$35,000 would probably be "highway robbery" and many HUD homes go for a little more than LIST.
But that is what your Buyer's Agent is there for; to do a CMA and guide you.