I have to also agree that banks do take their time most of the time. I also have experienced a response with in a day from the bank as well. Now for short sales, I don't agree with you on a bargain. I fill you have to have more patience. Some short sale can take up to 5 to 6 mon.or longer. I think when it comes down to it, its all about the bottom dollar for the banks.Short sales or foreclosures.
I have to agree with part of your statement. The banks seem to be in no hurry some of the time and totally out of touch with reality. For example, there is a home in my neighborhood that has been foreclosed and vacant for almost 2 years. Finally it is on the market, but the list price is about 50 - 60k over current market values. Explain that to me.
As for short sales, I don't know if I would call them great bargains here in Florida. My main objection is they can take an inordinate amount of time to close. Especially if there is more than one lien holder for the property in quesiton. In my opinion, once your offer is accepted by a bank for a REO you have a much clearer path to closing. Also, what is a great deal today may not be such a great deal six months from now if housing prices continue to decline especially in markets that are the hardest hit.