Distressed homes sell at largest discount since 2005

As reported by Bloomberg News, U.S. homes in the foreclosure process sold for about 32 percent less than non-distressed properties in the third quarter.

 According to a report from  RealtyTrac Inc.a quarter of all U.S. transactions involved those types of homes – those involving bank-owned real estate, residences in default, or those scheduled for auction.

Bank-owned real estate sold at an average 41 percent discount in the third quarter, up from 35 percent a year earlier, RealtyTrac said. Discounts for homes in default or scheduled for auction averaged 19 percent, compared with 18 percent a year earlier.

And that’s the biggest discount seen in five years.

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