[Monksdown]

I'm an agent and work at a very large brokerage's headquarters in Chantilly. You certainly don't have to bring money to the table anymore if you're negative on your equity. The short sale process has become increasingly less difficult over the last 18 months. We've seen it's success rate jump from about 4% of all short sales listed actually closing within a year of list, to nearly 20% being successfull in selling through the first quarter of this year. Unfortunately, most of those successes are seen after the 2nd ratified contract has fallen through due to seller's lender's issues.

I wouldn't suggest to anyone moving away from the great D.C. area in the shaky economic times we're facing. We're possibly the most insulated metropolitan region from unemployment issues.

I digress, by "starter" homes; do you mean homes that have been foreclosed on that need a little extra elbow grease? That's what a large percentage of these foreclosures end up being. Projects. Investors are so attracted to them because the rental market is so strong. And all indicators for this area point to the trough already being reached. Especially in the more cost friendly areas, (ie, prince william).

Imagine this, you buy a home for 200k, with good credit. You are spending very roughly 1100-1200 amortized. Combined with a rental market that would return 1350+ on many houses in that price range. That's smart business for investors. I could go on and on about the absorption rates in the different counties and how that effects the difficulty your friend is having, and how it is starting to limit the red the foreclosing banks are experiencing. But for a more informed breakdown, google Dr. Steven Fuller of George Mason. He is one of Northern Virginia's most accurate home sales forecaster.

None of that was a sales pitch, i just love this stuff.