Developers had lost so much money on those projects and I figured those were good deals for me.

If I can get good tenants that will stay for a year or two and not tear up the property, it was money well spent in lost rents.They don't get keys until fist month (or the prorated amount of the first month if it is more than three weeks) is in my hand.

For even real estate agents, off line marketing effectiveness has reduced by almost half (from 27% in 2007 to 15% in 2008), and even "For Sale" signs have lost their effectiveness by 2/3 (6% in 2007to 2% in 2008).

Never invested there myself, just saw the property lost by people who did.....

I've been down that road already and lost a ton.

you are right and I agree at some point the bank will have to cut down the lost even let go below foreclosured amount.What I'm finding in my local maket is that the REOs on MLS most of time are all at 15~17% above foreclosured amount (base on BPO?).

I lost my voting rights in India 'cause I voted for the party that they call 'Communal' and since then my name is NOT on the Voter's LIST!

I would want the tenant out so I could get the rodent problem under control and get a full scope of the termite damage.That is what I would be concerned with as well as your re-tenant and lost rent costs until you rent the unit out again.Since you own a duplex they have shared walls.You have to make sure the other tenant is clean or the pest control service will make ZERO DIFFERENCE.The reason is even if you put poison down but food is available the pest will leave the poison and eat the food.You have to close off all exterior gaps of the building,keep tree branches away from critters getting in,keep trash in trash cans and away from the building for pick up,clean unit top to bottom,pull out stove and fridge in kitchen and degrease and sanitize.After years of recycling tenants you would not believe what builds up back there that attracts and breeds pests.Good Luck

There is 4 people around my area that banked on appreciation back in '07, '08 and the lost everything.

That proved to be inaccurate and many of those have lost everything.I've always lived by the motto of hope for the best but be prepared for the worst.