This home is a "short sale", meaning the bank is making the final decision on the sales price. Having a Buyers Agent will allow you to get the most information regarding the value of this property and the surrounding area.
Give me a call if I can be of any assistance.
Really, the only way to find out is to make an offer. There is no telling what a seller will accept without doing that. If you would like help with this and you do not have an agent, please feel free to give me a call.