Jay and Carlos are correct. When the bank is the highest bidder at the auction and takes back the property, that transaction is recorded for the amount of the default mortgage (what was owed to the bank). When someone goes to anyone of the online valuation sites, such as Zillow or Cyberhomes or anyother site that provides AVMs (automated valuation models), the values or value ranges and comparables provided are skewed and inaccurate because their algorythms include ALL recorded transactions in county records. Including bank foreclosures. That is why it is best to contact a professional in the industry who can do a live search for real estate data. Unfortunately there are many "professionals" that do not fully research transactions and will choose the one's that will achieve their desired results.
The large amount of foreclosures, short sales, and bank owned properties are contributing to the "dragging down" of property values across the valley and state and with the projected number of mortgages that are due to reset this year and over the next 2 - 3 years, more foreclosures and short sales will add to depressed market values and/or prevent a market recovery or bottoming out anytime soon.... more