Brian Hoyt that's why I was posing the question/idea asking if any investors had considered partnering with a builder in their local area, if the market is one that is starting to rebound, with no available distressed properties, but lots available.

Where Cali and other speculative markets look like a roller coaster on a graph other markets when they had a swing were not as prominent.I definitely think California will increase a bunch in 2013 but that doesn't mean a speculative state marks a rebound for the whole country.

Wait until the news channels start picking up the housing market is returning and interest rates might be going up soon.The herds will really kick in then and the sellers mentality will jump from buyers market to neutral or sellers market when looking at offers and financing options.Some markets have already rebounded.

On the other hand, if your area is still over run with REO's, or other properties that are in some way depressed, and listed, use an agent.Personally speaking we build new construction, as the area where we live is rebounding and prices are going up.

@William Shaffer My credit is on the rebound.

Housing has dropped pretty severely in my area with the market only beginning to rebound in the last year or so.

If that is indeed true and you go through with the short sale, you will take a hard hit on your credit and be restricted from getting another loan for several years.If the property is worth even the same as the loan, you should simply market the home and pay off the bank at closing (keep making your payments, do not miss even one to keep your credit in tact).If the market is rebounding (i.e. prices are increasing), it may be worth the while to grit your teeth, cut back on expenses and wait for prices to increase so you can avoid a short sale as all costs.

We moved here because we knew it would be one of the first places to rebound, and it has a very broad based economy, with low unemployment of 5%.

- My market in Cookeville/Sparta is slowly rebounding, but still not real strong.

Other areas on the rebound are Boston-Edison District, Corktown, Woodbridge, Indian village, East English Village, The New Center, University District and a few other neighborhoods.