It seams that the banks are doing more modifications and selling more of their REOs directly to investors. Now is the time to buying real estate, fixing it and flipping it to new buyers. The probelm is that it takes CASH to buy directly from the banks. I am helping several of my investors partner up and buy investment properties.
If you don't have enough cash, have you considered self directing your IRA? I am personally using my Roth IRA to purchase investment properties and I can show you how.