Did I make a mistake in approaching this deal? Is it a fair deal?

[Account Closed]

In still looking for my first deal, I've come across a pre-foreclosure with the sheriff's auction coming up in just over a week. I stopped by the house today and discovered that the owner (wife) was still living in the house. My partner and I knocked on the door and she answered. We went about asking her if she was interested in selling her home. We didn't mention anything about it being in foreclosure; we talked about looking at it for ourselves to live in. She immediately said yes and when asking what she wanted for it she said to come in and take a look at it first and see what we think, that it needs a lot of work. Major smells and dirty too. The foreclosure notice says that the balance owed is $65,533 and the tax assessment is $127,800 which is think is high for the condition this house is in. It was last sold for $103,000 in 2001. Other homes in the the area are priced around $115-$130,000. She did make a comment that they were wanting to get around $75-80,000 which I think is too high given the repairs needed. I'm estimating around $15,000 or so. I wanted to offer her something around $67,500 so that it would cover the outstanding balance and give them a little in their pocket and I would pay the closing costs. Is that a fair offer? I don't want to offend the owner but I want to make sure I get a deal too given the amount of work involved. I want to get this house under contract before the sheriff's auction and it will be a cash deal but my question is did I make a mistake in making her think I wanted it for myself? My thought was if I approached her as an investor she wouldn't be so willing to talk to us about it but I'm wondering if that will come back to bite me in some way. I have formed an LLC for flipping properties that I would normally put the house in but if I told her it was a personal residence I can't really put the company name on it. Can it be transferred by quit claim deed after purchasing it? Thanks for your help.