The foreclosure 'discount'

This is as good an example of the nuttiness in housing that you will ever see. $640,000 for a 2 Bed, 1 Bath, 1,054 Sq. Ft. house, on a 5,000 sq ft. lot built in 1951.

clipped from calculatedrisk.blogspot.com Peter Viles at the LA Times has put together a collection of foreclosure listings in LA. Viles features one house on his blog L.A. Land: The foreclosure 'discount': 45% in Glassel Park. Check it out! Here is another: FORECLOSED: GLENDALE 3732 Mayfield Ave., Glendale 91214 Agent's description: Bank-owned. Sold for $640,000 in 2007. Beautiful remodeled house on zero traffic tree lined street. Raised foundation, refinished hardwood floors, newer roof ... private yard. • Sales history (from PropertyShark.com): Sold for $640,000 in February 2007. • Current listing price: $449,900 • Discount from sales price: 29.7% Note that the discount is to the asking price for the REO. Here is the listing at Realtor.com. This is a 2 Bed, 1 Bath, 1,054 Sq. Ft. house, on a 5,000 sq ft. lot built in 1951.