In active markets, REO's will seldom fetch only 65% to 70% of FMV or ARV when the bank can sell them at 95%. 

Many times in life, imperfect action is better than inaction.

If rejection leads to inaction, then you're headed to a self-inflicted failure.

If they don't pay I already have the 7 day notice in action.  

don't let inaction stop you! 

@Johann Jells I would think putting you money in to notes, doing some private lending of your own or with all the upstart REI funds you could put your money there.Lots of real estate options that are very inactive but still great options for cash heavy (great problem to have =) ) Investors.Hope this helped!

I have read and listened to tons of materials here at BiggerPockets (a bit jaded now since i have been inactive), but still some doubts linger.Here is what I am thinking.1) Follow 1% rule for potential rent and property cost.

You have been practicing the most important of investor traits, patience.Giving in to impatience due to an uneasiness with inaction normally leads to regret.  

So, a lender looks at the cost or market, whichever is less within one year (some go to six months in active markets as a concession) and after one year they will look to the appraised value.

This week also is full of meetups that you can attend in the area:Commercial RE Investors Mastermind meets tomorrow in West HillsReal Estate Club in Action meets in Burbank on WednesdaySan Fernando Valley Real Estate Club meets on Wednesday in Van NuysFibi Pasadena meets on Thursday in PasadenaI'm hoping to catch a couple of these.Good luck and see you around.