As the time nears for them to move - they get more desperate and deals can be made for homes for much less than what you pay for new homes.

When people feel desperate, they are easily sold.My advice is to keep our eyes open, our heads down, and make sure our voice is heard!

After due diligence if it is determined to be a good investment then you will need to push them to see how desperate they are to sell.Amount down,interest rate,sales price,terms of the loan,etc.

You will mainly be dealing with individuals who do not have the funds to move the home so are desperate to get something for their home.

To many people are so desperate for a "Deal" they just close any transaction.

@Mark Creason  I hear you.. but I would submit the experience level of your average commercial borrower and the average BP borrower who is trying to buy low value assets will be vastly different.. if your commercial borrower did not get a request to pay for those items then they would probably be skeptical.Like all the unsolicited crap we.. get I have played with a few of them for fun.you send one e mail back and they say you are approved for 5 million  LOL.. no one does that as we know... but there are inexperienced folks that just don't really know better and they want desperately to be RE investor and they get sucked in.I just close a loan with Lendinghome on a Dallas flip.. my first loan with someone other than my commercial bank in 20 years.. and they asked for I think 150 or 200 up front for a processing fee but they did their own evaluation on the collateral .. and of course I could check them out very easily they are in SF.Its the dreamers that really get taken on these scams.. and in your world its the guy who has no money bad credit but somehow tied up some big project that goes shopping for big money.. they will get sucked into sending bigger due diligence fees and never getting funding. 

Sometimes people become assh*les simply because they are desperate.  

Apparently street mimes in New York are really feeling the effects of our economic troubles.http://www.bloggingcentral.com/Citys-Street-Mimes-Desperate-for-Dollars-In-Melty-Economy-378863.php

They'll think you're desperate, and they'll think you're a pushover.

The seller when they can’t find a buyer and the buyers who are inexperienced investors desperate for a deal and insufficiently educated on how to identify a good deal.