It can also be that it didn't sell for $450K.
When we got there, the house was a disaster--a tear down. There is no way it deteriorated to that extent in less than a year. We figured that the bank who wrote the original mortgage was taken and was now just trying to recoup whatever they could from the property. Then, an article came out in our local paper about situations like this. It's the new "white collar" crime. Buyers/appraisers misrepresent, take out 100% financing on houses that are way over appraised, and never make a payment!
Not saying that is what is happening in Cloverdale, but you never know. Just wanted to add it to the possibilities.