This market never ceases to amaze me.
About a year ago a local investor that got in over his head approached me to purchase a few or his properties. The prices were extremely high and I told him so. I did finally purchase one of them last summer which wasn't such a good deal but I worked out some creative terms that I could live with.
This investor continued to call me every so often trying to unload the last two of his properties. I told him he was too high and he said he could not go any lower due to loan payoff. Finally last month he called me and said the bank would be willing to accept a short sale offer on both of the properties. I called the banker to see what he had to say and submitted my offers.
To my surprise the bank accepted one of my offers and countered on the second. I told the banker that I was not interested in the counter offer but would go ahead with the accepted offer.
Here is the deal. 3 bedroom house in OK shape, good roof, vinyl sided, rented for $400 per month with tenant responsible for all maintenance on the property for entire lease term. My offer $2000. The outstanding loan was $12000+, back taxes of $1500, county appraised at $33000 (a little high). I went into closing with $2057 for the purchase and left with a check for $740 for rent proration and deposit. So my total cash into this free and clear property is $1267. The back taxes were paid a closing.
I guess the point of the story is you don't get anything unless you ask. The worst they can say is no. And every once in a while you get a yes. Get out there and make it happen.