Preforclosure and buying notes from a bank

[Jason Etheredge]

There is a property in my neighborhood that the owners are trying to sell before they get foreclosed on. They are behind on payments and want they are asking is way too much because they owe too much. It’s a big brick cape with full basement and could be a nice property for a flip but it is trashed. I would have to put $100K plus into it to fix. The main sewage line is collapsed and there is backed up sewage and the house has been destroyed by it being turned into a type of boarding house. Everything has been closed in and deadbolts everywhere. Is there a way for me to approach the bank and offer to buy the note for a deep discount or try a short sale? Do I just wait for the bank to foreclose on it. What is my best course of action to jump on this property?

Right now they are asking $155k and the ARV is around 205-225k. I feel like the bank will take one look and smell at this property and dump it but I'd like to be the one to snag it.