Cut corners and your reputation will suffer. 

Example if they only employer in town goes out of business and the town dies...then your house probably going to suffer as well...

I was able to gain the confidence and understanding of the rehab process with less scary numbers.Long term though, I don't want my entire portfolio to be houses that on paper look great (all-in for $60k, renting for $1150/mo) but in reality, still suffer from roof replacements, HVAC systems, expensive capex that needs to be covered.I think the Texas market (again, the market I'm investing in), plays a middle ground. 

My guess is that those guys are suffering to some extent...which might spell a buying opportunity in 1-3 years. 

If you didn't use the agent, what would suffer and how badly?

I mentioned incompetence as my brother-in-law seemed to have suffered from this on at least one deal he participated in with a "friend"...i.e. a closing lawyer/title insurance guy who thought he could do it all.

. :) To be honest whats going down in the USA is having shock waves throughout the world and the SA property market is suffering.

So essentially these guys are cash buyers who I can present deals to, yet, I'm still suffering from analysis paralysis.

The only time I've made any headway with owners in this situation is when they are suffering some kind of liability associated with the house: HOA liens or other liens that appear and ruin their credit after the BK.Their attorney will be a deal breaker.

Assuming that the lender instructs the trustee to open the bidding low enough to attract third party bids, the lender suffers a loss to the extent that the winning bid is less than the unpaid balance.