One more supporter of Rt.66 strategy (who successfully bought a REO recently using that exact logic). Double dipping + high cash (to reduce uncertainty of closing) + few contingencies (+ government/public as the ultimate bag holder in many cases) can work wonders when greed is the basic lubricant. Just remember one other formula: you can reduce purchase price offer almost in proportion to cash you bring to table. Sometimes the proportion can be dramatic, like $ for $ i.e. $400,000 cash = $800,000 loan; A Bird in hand is truly worth two in a Bush for REOs!. That is why all cash offers always win out in the end.
