It sounds to me like you are doing fine. Your property pencils out, and you are happy with the price.

The banks try to get as much as they can get, and they drop the price gradually as the property doesn't sell. They aren't going to give away any money that they don't absolutely have to.

It varies a lot by location. I understand that in areas of Detroit, the bank will accept almost any offer, because they have so many foreclosures, some of the areas are very rough, and few local residents could quailfy for a loan if there are no sub-prime mortgages. (not an area I'd invest in, so I am not recomending),

Perhaps in another area, you wouldn't get more than 10% off.

Most of the guys I know who are buying foreclosures are trying to get 30% off the current fair market value. At that price level, they do not get everything they offer on.

In the areas where prices have dropped 30%, 65% off the price from 2 years ago, wouldn't be much of a savings.

The bank is concerned about getting their own money back, and they don't care about the ex-owner's equity. So they will accept a lower offer on places where the loan was smaller. Not everything was financed at 100%, so that is something to look at when you are choosing places to offer on: the loan amount vs the fair market value of the property.