How many thousands of dollars are Banks throwing away by allowing investors to circumvent the no-assigning and no-selling-before-value-adding conditions that are in their REO Contracts?

When conditions get like this, in any type of market, it's a signal that a significant number of people are going to lose money - whether it's from buying stocks that look like they'll just keep going up, or buying houses that are in a bubble. 

Until you know current condition of title, you won't know his to work this opportunity.Opportunities are found; deals are made. 

Condition of the plumbing was unknown.  

The single family homes in that price range are either in poor condition, or are in a bad area.

The property is is great condition just needs sprucing up and I can get friends to help repair it to code. 

A good project manager is expensive, so you have to calculate that into your margins.Try not to get too focused on the word "distressed", as almost all flips are in some kind of distress, whether it be the situation, the condition, or some other issue.  

No title company is going to insure that the condition of title is free of claims when there is an active, pending litigation.

Will your "comps" still be "comps" of the market conditions in two years? 

Are there any banks out there that will lend the other 75% on this property in its current condition?