Shortsale on a newer house

Folks,
If there are properties that are newer, say built around
2000 and newer. The homeowner has almost no equity
since there are even newer properties that are going
at or below the original purchase price.

Now, if banks will get pretty close to their mortgage
amounts they lent out on a foreclosure sale, why would
they even want to consider a short sale.??
Of course hardship to the owner is one factor. But it
definitely might not be possible to fabricate any need
for repairs. Esp, if one wants to make a profit of say
20K on say a 200K house. I mean 20K after holding
costs,sales costs etc. lets say at a 40K+ discount
on a 200K home.

Any tips?
I like the idea of making money as well as helping folks,
but don’t want to waste too much time on a dead
horse. Any tips/suggestions?

I plan to purchase outright from the bank and then deal
with flipping.

Thanks
Krish

Depending on the lenders, they have to hold ( I think ) up to 7 times the amount of the non-performing loan in cash reserve by law, thats 1.4 million on a 200k loan. Thats 1.4 million that can’t be loaned out until it current or off the books. Thats for every defaulted loan they have.

Tony