Best marketing for prospective purchase

[Des Shei]

I have implemented a new lead generation technique i picked up from a fellow investor called "Driving for Dollars". Pretty much i drive around various neighborhoods in my target market and farm out for homes that fit my distressed criteria. This new method is proving very efficient. Now unto my question.

I've found a property that has been vacant for about 6 months. Exterior wise it is in great shape; interior needs quite a bit of help. I learned from a neighbor the owner passed away; and left the property to his family who were unaware of a 275k mortgage or lien on the property.Apparently the family of the deceased were in the process of remodeling the home and couldn't keep up with the mortgage and has since left the home. I am very certain the home would appraise in the 220k range. it's a 3bd/2ba home with 2Car detached garage in a nice working class neighborhood.

I'm looking for options on how to proceed with this. For targeted homes i leave a note asking the owner to call me if they need to sell so i left that there; but i am certain no one has been at the property in a while. i did notice on the front door, the "winterized" sign which tells me the bank has reclaimed the property, so maybe it's due to be listed as an REO? The sign appears old and i checked the MLS and it's not listed. i'd love to get my hands on it before an REO agent gets it. What say ye?