Approaching Distressed Properties

[Aaron F]

I went out driving a couple days ago through several different neighborhoods near my area looking for potential deals. I noticed about 4 homes that had grass 2+ feet high with overgrown shrubs, etc.

One property had the tall grass and a gutter busted into pieces and hanging to the ground in several areas. This house is in a nice neighborhood and is a nice house (minus the yard). There was no For Sale sign. At this point, I do not know if the owner still lives there.

I did a little research and found the owners name, purchase price, and purchase date. A Google search revealed that the property is not listed.

The purchase price was for $350,000 in the early part of 2006. A 2009 Tax Assessment has the property at $235,000. I believe it to be worth roughly $180,000 +/- 10%.

I doubt that there is much equity in the property. Since the price has dropped so much, how should it be approached? Short Sale? Worth pursuing?

If I decide to pursue and cannot find homeowner, would there be any benefit to find the lender? Even if I find the homeowner, is there a way to get a deal with these numbers (offer 180,000*1.1*0.7=$138,600)? Would any lender be willing to loose on the high end 350,000-138,600=$211,400?

I look forward to your input.