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.

I'm probably more open to it, as I have another property that had declining values due to assesments, and then doubled in two years, after assements were over.But I'm definitely trying to do my homework... in fact this is part of my homework :)

On my portal it says declined, but no reasoning behind it.

If they decline, then the warning will come verbally about trespassing and harassing my tenants.

They drop it to $160K to get a quick sale.Had they been realistic to begin with, or had they reacted fast enough, they could have gotten closer to $190K, but they kept refusing to accept the value decline and didn't want to take a big hit. 

There are areas in every state that are real crap holes.A lot of the rust belt states have declining populations.

.- letter explaining a decline in my business income from one year to the next.  

If a bank gets overweighted in your loan type, has bad default experience, or gets a reprimand from its regulator, it can and will decline to renew your balloon loan, regardless of what the lender says up front.

I did some high level research including looking into the local economy and determined it is on the decline (unfortuneately) 2% decline annually so I'm trying to determine if this is something I should consider or pass on.

So if the appraised value of the property has declined to the point where the mortgage balance is >80%LTV, you would have to bring it on-side at Close.