Newbie, need advice

[Yanmin Wu]

I find a property I am interested. Apparently the seller hasn't paid the mortgage and is in negotiations with the bank. The current owner is also behind on taxes and utility payments. My realtor told me that the bank wants all the money they've loaned returned and considers offers based on that alone. Also, any offer would either allow the current owner enough money to cover those debts or be made with an understanding that the new owners will pay.

The listing price is $125,000. If I were to make an offer, at what price I should have started?Or should I wait and see what happens? Any advices would be appreciated.

Thanks

Yanmin