Newbie needs advice on off-market property

[Dan Golden]

Hey guys and gals,

I've never purchased a property as an investment, I'm as rookie as they come. I'd sift through the forums trying to find a response but if there is a deal time is of the essence...

I went driving for dollars just getting a feel for my market and I found a house that looked vacant, upon closer inspection, I saw a past due water notice on the door. I wrote a letter to the owner of record. They called me back.  Here's the scenario:

Owner's mother is a real estate agent but knows nothing about short sales. She was the one that called me. The couple that own the house are going through a divorce and despite the bank ordering them to list the house for sale, apparently the wife won't sign anything to agree to list the house. As a result of that the house is not on the market at all. The bank has changed the locks and are going through the foreclosure process. The mother thinks that they owe nearly what it's worth so it would definitely be a short sale situation if there is a deal to be had. 

She can get her son to sign a release to permit the bank to speak to us about the balance, etc. 

What would you pros do? Maybe it's nothing? just an unlisted property that will go to foreclosure and not worth messing with. Maybe not?

I should add that this house is on a great lot in an extremely desirable area, so much so, even if the short sale couldn't work investment-wise, I'd move in myself...

Thank you in advance for reading and your advice.