But purely looking at what you put, not being experienced in flipping, I would make the offer subject to interior inspection (7day) inspection period, 15-30 day close.

I'm hoping to gain some insight from an experienced investor, local to the area.

The investor was experienced and I'd known him for several years.

Eric, what you're wanting is called a "short sale" you'll need a Realtor experienced in short sales and banks sell for less than what  is owed everyday.A short sale can be accomplished before foreclosure, just  make sure you  use a Realtor!

Although your neighbor hasn't experienced any vacancy in the past 3 yrs doesn't mean that would be the same for you. 

It's a group of new and experienced investors with some new faces each meetup.Search for the "Coffee with Investors in Delray Beach" post.  

Offering to help an experienced investor (for free...your "pay" is the education) is the way to jump start that.  

If so, i would connect with those owners and see what they are experiencing and how they handle it. 

@Brett Snodgrass  in my mind totally market dependent.and generally speaking if you have no other way to get properties one probably relies on them and you wade through the garbage to find a gem.those that tie up MLS properties and then try to resell then like happens in Texas I have ZERO respect for... to me its bush league.I know my clients get deals from wholesalers but me personally I don't have time for them. far to many are brand new and do not have a clue and the one's that are experienced have their buyers already...

Its not that they told me anything about this before and I did not take any action on it.Can experienced folks suggest what I should be doing now?