Pre-Foreclosure (Purchasing from Family Member home needs repair)

[Kerry Arm]

My elder Aunt has a home that is in the Pre-Foreclosure stage and she would like to sell it to me. Found Multiple issues after little research. The house needs about $70k to $100k in repairs  and the current mortgage balance is around $245k. The home value seem to hover around $270k to $290k. My understanding is that she can sell me the home while it's in the Pre-foreclosure stage but my problem is, would the bank accept a selling price of $120k? Has anyone had a similar experience or knows how the Pre-foreclosure process works?  Oh and she is willing to sell me the home for the above mentioned price with no gain to her.