Foreclosure Discount Capitals: Best Cities to Beat the Bank

Teke Wiggin



In the wake of the housing crisis, the number foreclosures has skyrocketed as depressed real estate prices and subprime mortgages continue to push millions of borrowers into default. As of Dec. 31, banks owned nearly 700,000 homes. Hordes more are on pace to join that enormous inventory, with 700,000 homeowners in some state of foreclosure.

Jumping nearly fourfold since the peak of the housing boom, foreclosure sales accounted for 20 percent of total sales in the country between July and September of last year. While the vacant properties represent loss and hardship for many, the massive supply might offer some current buyers the deal-of-a-lifetime.

In fact, according to data from RealtyTrac, on average, foreclosed homes sold for 34 percent below their market value between summer and early fall of last year. In some pockets of the country, that number was significantly higher. The foreclosure discount in Trenton, N.J., for example, clocked in at a staggering 67.89 percent.

Using data calculated by RealtyTrac, AOL Real Estate brings you a mix of houses in cities that offer some of the steepest foreclosure discounts in the country.

Click the gallery below to see everything from foreclosed mansions (pictured above) to first-time-homebuyer gems.