Profile picture for user1772114

Could someone explain HUD properties odd price history?

I have noticed several properties in my area that are HUD cases.  The price histories go something as follows:

Date    Description    Price    Change                    $/sqft    Source     
10/08/2013    Listed for sale    $58,000    --    $33    RE/MAX Heritage    
08/21/2013    Listing removed    $58,000    --            $33    RE/MAX Heritage    
07/29/2013    Listed for sale    $58,000    -54.8%    $33    RE/MAX Heritage    
06/25/2013    Sold                    $128,400    -22.8%    $73    Public Record    
05/29/2013 Sold: Foreclosed to lender $166,395

So, why are these properties now so cheap?  Why are they shown as sold and then re-listed around a month later for about half "value?"

Thank you
  • October 11 2013 - Town of Sheboygan
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (3)

Profile picture for Brian French
You are speaking about the 3614 Lakeshore Road home - it is a fantastic price.  I would not delay.  I would encourage you to be more interested in where the price is now!
  • October 12 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The initial prices were based on what was owed to the bank at foreclosure, probably was two loans.  The new pricing $58K was based on the value of the home at current market and in the current condition.  If the home is below market for this area, it probably needs repairs.  You can view the HUD Property Condition Report to see if repairs are needed.
  • October 12 2013
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Just guessing because not sure where you are seeing the numbers. My guess is the high prices are when the bank took back the house at auction. They usually bid what is owed and then when they own it they do a current market valuation to list it at what is the current market price.
  • October 12 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.