Foreclosed Properties Selling at Even Steeper Discounts

foreclosed properties
foreclosed properties

The share of bank-owned homes and homes in some stage of foreclosure dropped 5 percent from the first quarter to the second quarter of 2011, falling from 36 percent to 31 percent, but was up from 24 percent in second-quarter 2010, according to a report released today by foreclosure data provider RealtyTrac.

And distressed properties are selling at a larger discount these days, RealtyTrac reported:

  • The average sales price of a bank-owned (also known as real estate owned or REO) home was $145,211 in the second quarter, which was about 40 percent below the average sales price of a non-foreclosure home. That compares with a 36 percent discount in first-quarter 2011 and a 34 percent discount in second-quarter 2010.