There were 2 similar homes went into escrow this month in Phillips Ranch. Both of them have same floorplan and both are 2940 sq ft.

One is regular sale with pool that is listed for $855,000 and another is a bank owned property listed for $659,900. The bank owned one was sold in 9 days and the regular sale was sold in 99 days.

If banks are so penny pinching on service fees, why are they selling bank owned home at 30% below market? Are they out of their mind?

To answer this, let's look at the recently revised instruction on how to perform BPOs (Broker Price Opinion) on pre-foreclosure and foreclosed properties from the lenders.

Lenders now want "A realistic, low end 30 day liquidation price, most importantly achieving multiple offers within 1 week of listing." They are desperate to convert their idle assets into cash.

This is why we are seeing bank owned homes dumped into the market at an outrageous low price making it excellent opportunity for buyers to seize great deals.