If it goes back to the bank you will likely be facing a bidding war as an REO property. It seems like all the REO’s coming on the market get intentionally underpriced to create competition. If you can get to the owners and have them agree to a short sale you stand a better chance of getting it and at a better price. Alot will depend upon the lender(s) involved, loan amounts, recourse loans or not.

The plus of them doing a short sale is you can probably get them another 3 to 6 months of free rent in their home.

Send me a private message with the address and I can give you more specific advice if you want it.