waiting for foreclosure or just offer 420k? seller owes 380k reverse mortgage

[Lilly Fang]

I would like to offer $380k for a house listed at 465k and just chatted with the listing agent. Basically, the listing agent agreed that the house's condition is not worth the listing price, but this house has a 380k reverse mortgage and the seller is in a care home already. She said the house probably will go into foreclosure. The house has a solar power purchase agreement that the listing agent said something about costs 27k to buy out, but I said usually PPA is just a monthly payment for purchasing the solar, unless you want to buy out the solar panel, and she had no idea. I told her my price is $380K, but she said the seller needed 420K to break even, or the seller just let it go into foreclosure. Should I raise my price to 400k? or buy pre-foreclosure or foreclosure? (assume 380k will get it)