In case you had not become aware yet, this home is in preforeclosure and according to the Memphis Daily News is scheduled to be auctioned :
Sale at public auction will be on January 2, 2009 at 11:00 a.m. Central Standard Time, at the southwest door, the Adams Street entrance of the Shelby County Courthouse, Memphis, Tennessee pursuant to Deed of Trust.
I guess this answers your concerns about why it was not being kept up to the neighborhood standards.
Can't disagree with your point.....but, do you have an active home owner's association? This may be the best avenue to find a long term solution. Our recommendation is to include this general topic on the agenda for the next HOA meeting.
I personally have not been inside this home, however, the tax assessor believes it to be worth 1.1 mil. Not every price is solely based upon square footage either - a trailer has square footage. Germantown's dirt does command more dollars than most areas, then you take into consideration things like oversized lot or a corner lot, a inground pool, 4 car garage....you get the picture - things that don't show up in sqaure footage.
From what you say about it being an eyesore, more than likely the owners have already moved out. It has not been foreclosed on from my quick check, so hopefully this is only a temporal thing. If it really gets up down, call the City of Germantown and they will crack the whip on getting it cleaned up.
Best of luck,