Need your opinion on working this deal!! Thank you!!

Question on deal I'm considering: 3 bd/1ba home ARV: $110K Current home: Has about $25K needed rehab (over the phone analysis, not in person yet...seller outright said $20K). They owe $54K. Behind by $1475 total to bank. Any normal situation, I'd be looking in the $40s on an maximum offer. Here are the extra details: Mom lives there but is dying...has a few more months. They are wanting to pay off what is owed, plus funeral expenses, plus a flat screen TV for Mom right now. They were asking for $13K above the $54K owed. That just becomes not do-able for a cash offer w/ rehab needed and ARV where it is. So trying to look at terms/lease option. They want $67K, $3K down, and want to keep the house for 3 more months before anyone moves in. (I would want part of that $3K down to get the house current, but maybe that's a small detail). This sounds like potentially a lease option with TIME to get a tenant buyer....or maybe even a co-op lease option. But I'm trying to figure out the angle and win-win here. The numbers just seem still too high to me even on terms with the rehab needed? Maybe it's a lease option handyman special? Not trying to make something work that just should be a "NEXT"----but since they have 3 months time, it just seemed like something where there might be a chance so I thought I'd fish for opinions here. Their main "now" motivation is funeral expenses and flat screen TV. They are only talking to us at the moment and honestly they know that the bank will likely just take this property when she passes. Please tell me if I'm over-thinking this, and should just say "NEXT" or if you have ideas on a creative option here.