I spoke with a local bank that gave me an in-house commercial loan. 

Lender in the same state will be fine, local lender would be local bank?

The money at the end, even with 5%-9% Cash on Cash ROI, is spectacular from my perspective.Getting that ball rolling is the key...So Property 1 (here is where I ask my questions)...Buy a Foreclosed or Dramatically Reduced (Not in this market) PropertyIf we can pay cash at this point, we should, I get that bit, but CAN this be financed through a bank?

Pre-qualify the OfferHas anyone heard of running prospective buyers through a seller's choice of a pre-determined bank to get a solid review of their credit?

He is working for the bank to change locks, mow lawn, etc. the bank foreclosed after the owner died.

What condition should a property be in for the bank to finance against it?

No one cares.Now if you bought this house from the Land Bank and need a COA to close the project pull the permit.

@Joe Splitrock @Jay Hinrichs agreed our cycles have moved longer than expected on this one due to unfeathered intervention by central banks, we are moving back into the non- bank underwriting more than 40% of new mortgages  from 10% in 2009.

Really how the value is determined is what you will sell it for as a seller, what a buyer will pay and what a bank will lend they all have to balance. 

Seriously though, this sounds like something an REO bank would do on a short sale approval.