If there are no reasons to decline based on the info indicated and a google search on the applicants I would request the fee for the background and credit check, and then order the report.

Area housing markets rise and decline effect transactional investors different than residual investors.

We declined, because in addition to the sales price, there were additional commissions and fees that would add about $6k more. 

That is a far cry from dropping to zero I agree, but it does speak to the velocity of value decline when it does decline.

We countered with $1K contribution from seller and abruptly the offer was declined by Freddie with no explanation except for "unjust hardship" They would not elaborate any further.

Plus I am not sure I want to invest in areas that do that, cos it seems a lot of those areas are losing population and so possibly future declines in sales price and rents..But I am looking at the properties I have now, the way I financed them now.

Sale volume drives prices down until the inventory declines( on this side of the cycle).

Although the causes of the Great Depression are still uncertain, the basic cause was a sudden loss of confidence in the economic future (hence the decline in stocks.)

His gut tells him that we'll see another 20% to 30% decline as all of this inventory hits the market, so he wants to wait a year, maybe two, until he sees a positive trend.My thinking is that the lower-priced, NOO properties don't have much more to go down, and if they work for me at today's prices and I'm going to own them for 10 to 20 years, I don't really mind if I miss timing the absolute bottom by 20%.

Sometimes an applicant will call you to see if they can work something out if they really want the house--refer back to the reasons they were declined & that it is in writing & move on.