Bank Dumps Foreclosure in Lake Cyrus Birmingham AL

A bank has dumped a PRISTINE, ALL-BRICK, 2- YEAR OLD foreclosure in Lake Cyrus Birmingham AL for $143,000 less (30%!) than the tax value and $63,000 less than anything similar that has been listed or sold in this PUD.  For a link to this home, including photos, go to 1822 Lake Cyrus Club Drive.  Take a look at this chart:

Maybe this doesn't sound like big news to you but it is to me because it is right down the street from my home.  The foreclosing lender (seller) has listed the home with an agent whose office is 28 miles away and, according to MLS, apparently has not sold a house anywhere near this price range or in this area in the past 12 months!  The only explanation(s) for this unconscionable bank foreclosure dumping is either (1) a desire for a super quick sale, (2) the incompetence of the agent doing the BPO and / or (3) the incompetence of the foreclosing lender from an oversight perspective.  Less than 1/4 of a mile from my personal residence, this immaculate home was built in 2007 and purchased for over $500,000 two years ago and came on the market 7 days ago for $335,000.  Per my discussion with the listing agent, the home is now apparently the subject of a "feeding frenzy" which I hope drives the price upward to some reasonable level for those of us living in and around the area to support our values.  In defense of the listing agent, he represented to me that he recommended a higher listing price which the seller rejected. This bank foreclosure dumping is probably unavoidable and there is probably no recourse but at least by posting it to my blog here, maybe people will be a little more aware of what is going on around them as far as the market and protect themselves accordingly.  Of course, the flip side is this practice will actually hurt the banks even more potentially as it will help to create more short-sale scenarios due unneccessary bank foreclosure dumping.  Incidentally, there is no yard sign at this point (flyers in the windows). 

In the Lake Cyrus PUD, there are a probably a dozen or more different zoning areas with different restrictions (e.g., lot size, square footage, etc..,) and my hunch is the listing agent used inappropriate comparables but that is only speculation on my part.   I know what you are thinking.  Stop belly aching - foreclosures are a crazy business and everybody is getting burned and this happens a thousand times a day.  BUT IT DOESN'T HAVE TO!  Okay, so once I find out who the lien holder is, I will at least make a few calls to the dumping bank to find out if they know they have probably left significant money on the table.  On the flip side, the buyer of this home will likely get a great deal.