probate in California

[Shaw Wolff]

I'm new to BP and wanted to get some feedback on this deal. I found a home that an elderly woman had lived. She had to move into assisted living. Her and her husband had taken out a reverse mortgage in 2010 for $324k. The sold comps are at $132k but  this house needs a total update ( just imagine the mid sixties). I estimate 15k- 17k rehab costs. My question is  since the lender lost a ton on the deal and there is no equity going back to the owners, what would be a good way to make an offer on the property? And no, not all houses in Cali are 500k or more. We live in the high desert. 

Any feedback would be appreciated.