House in Pre-Forclosure...Is this a deal?

[BJ Henderson]

I got a call from a lawyer about a client stating they were going into pre-foreclosure and wanted to get out the deal before it goes into foreclosure. It's a 3/2, a little over 1816 sq ft on about 10 acres with an ARV in the low 200s. He stated they are willing to let it go for 160k. It's going to need about 5k in repairs.

Should I talk them down? 

I'm thinking mid 120's  would be a fair offer. 

Any other suggestions?