Is this idea absolutely crazy?

Hi! I'm a first time homebuyer in Pennsylvania. I am approved for a conventional mortgage and was actually cleared to close on a home at 210k before the seller requested to extend our contract in a way that was unacceptable to me, so the deal was killed.

Recently, I was looking for another property, and stumbled across a house I am very interested in. A brief history:

This house was foreclosed on in 2015 when the previous owner went bankrupt. The previous owner purchased this property in 2011 for 370k. It was sold at auction in March of 2017 and it sold for 160k to an investment bank. This investment bank has a realty arm as well- and they put some upgrades into the house. Probably around 30k or so. They listed the house in May 2017 for 400k. It is now August 2017, and the house is listed at 290k.

This house is located in a terrible school district with high property taxes- which is likely why it isn't selling. It's also drastically overpriced for that market at the moment. I know zestimate's are not extremely accurate, but the zestimate on this house is 200k.

It has only had one serious offer in the 5 months it's been on the market. I don't know what the individual offered (this was recent) but I do know they required a 5 month contingency because they're moving from out of state. The bank outright refused the offer because of the contingency.

Now, I know the previous owner who had to declare bankruptcy. In fact, I've been at that house numerous times as this person is a friend of mine. She has disclosed to me everything she is aware of that would be problematic and walked me painstakingly though the house with my real estate agent. It is in very good condition.

Do you think it would be possible to negotiate with this investment bank to get this house on a steal? I suspect they need to unload it given their drastic price cuts recently. I was going to write my initial offer for 215k- no contingencies (including inspection) and a 20 day close (my broker assures me he can do this). The most I can pay is 230k with the same terms.

Is this even worth pursuing? Or am I nuts? I know 215k is very low, but since they purchased it for 160k, and put 30k or so into the house, I feel like I may not be completely out of my mind, even with the asking price.

Any thoughts? Anyone with experience in purchasing a property in a situation like this?

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