In my market a new property should get 6 bookings in 6 hours.I think my La Grange, TX market is way slower than yours.   

Cost of exercising this option: 6 months rent, plus prorated commission if any paid to RE Brokers.

The short sale route is slow, certainly, depends a little bit on the lender whether they will respond slower yet, or a little more quickly.

Germain Act (named after the 2 congressman that sponsored the legislation) that relaxed the restrictions on banks for making home loans as well as prohibited banks from exercising the "due-on-sale" clause if a homeowner transferred property.  

It isn't actually a sale until they exercise their Option.

Once the property is renovated then you exercise your option to buy and now the house can qualify even for FHA financing.  

But when I'm not working, I love staying active and exercising, exploring food spots, anime, and abusing AMC's A-List. 

Given that real estate capital markets typically move slower, I don't think the 7/15 deadline will materially affect pricing. 

Possibly not good for landlords in those specific markets depending on rental demand.   7k house unless concentrated all in one market is just a dimple on a pimple LOL.. this is a failed exercise by Zillow..

But looking at my local market, there is really no 10 year period over which properties lost value or grew slower than inflation.