Banks offered 61% off these foreclosures

Mathew Padilla:

At a recent foreclosure auction in Santa Ana, investors bought eight properties, or 36% of the 22 offered for sale.

I have looked more closely at those eight properties, after blogging previously on the June 26 trustee's sale. (Read the first post: Frenzied Bidding on Discounted Foreclosures. Property pictured is on Newell Street in Garden Grove; photo courtesy of ForeclosureTrackers.com)

On seven of the properties, the banks or loan servicers offered an average discount of 61% against the debt owed on a first mortgage. (On one of the properties, I could not find the notice of trustee's sale.)

Those seven properties sold for an average discount of 56% against debt. Even though investors bid against each other, they barely nudged up the sale price from the bank's minimum bid.