Take a needle scaler to that rear axle and scale away and see whats left when rust stops falling off it. I live in the rust belt and sometimes pics make the scale and caked on goo look worse then it is. Though I must admit, your pic looks pretty bad. The last pic you posted of the front half of the undercarriage doesnt look that bad. The pic of the whole LC looks good! Spray it down with some "spray 9" cleaner and it'll melt all that black mold and mildew right off of it. Then post a pic of it all washed up. Also after you needle scale the rear axle housing post a pic of the pile of crap that comes off of it. Then you can access if its worth saving. Can you get the diff fill plug and drain plug out?
I love projects like this, my wife says I'm a good turd polisher. LOL
Good score for $500 
I love projects like this, my wife says I'm a good turd polisher. LOL

