So, if you have a qualified buyer you have a much higher chance of making a deal happen.

If that is the case my honest answer to you is going to be keep trying but the chances are slim.

On a side note, shouldn't we see some crazy community improvements as a result of the unexpected tax revenues throughout the early 2000s?

my advice is be polite to them and try to work with them to leave the place clean. tell them you would like them to leave ASAP and leave it in good condition.obviously you can 'go after them' all you want, but what are you going to get other than their first born. understand that you can huff and puff all you want and threaten to sue if they don't do this and they don't do that, but that won't motivate them if they have nothing to lose. if i were you, my goal would be to be as nice as possible to raise your chances of getting that place back as clean as possible.

Someone lent Roy money for a return knowing there was a chance he would default.

FAT CHANCE!

If so, the vacant units are going to stay vacant for a while, and put more pressure on the HOAs.I seriously doubt you're going to miss the "chance of a lifetime" by passing on this unit.

I went to a local bank, got a commercial loan for a "Cheap" house + improvement loans total $20k interest 7.34% fixed - 15 years.

If they are there for a long period of time, chances are they are having some decent conversions.

My opinion is not to throw away a lead that could be a good deal, especially when you're starting out.Short sale is the way to go in these cases, but you want to ensure that you're signing up properties that have a good chance of getting a deep discount from the lender.Such properties are those that have volatile features that can be pointed out and negotiated/overestimated by the lender.