There have been a number of sales in the neighborhood within the past few months for similar homes for around $200,000.

They started asking what was owed -- $840K Which was a joke since there are 32 houses for sale in this neighborhood where home values have tanked.

A couple reasons I can think of are -Can not come up with down payment -Can not live in same quality neighborhood and house.

PITI: 900-1000 For owner financing: I can get 1200-1500 a month for this property depending on the neighborhood and get a down of 5,10, 20% (or more!)

We're apprehensive in that we've worked hard to get this house paid off, but at the same time, I don't like the neighborhood and want to move anyway.

For the specific condos I looked at, I ran. http://biggerpockets.com/forums/48/topics/22995-distressed-condos-in-great-neighborhoods

Current goal is to locate pocket neighborhoods in Ohio.

Your best bet may be small neighborhood banks.

I'm also going to drive around older neighborhoods and look for vacant houses and other FSBO's

Example is huge repairs, bad neighborhood, huge decline in market value.See if you can meet some buyers that might be interested, and negotiate the short for them if you have the expertise.