Foreclosed homes in California are selling at an average of 7% below market value, and are taking an average of 15 months to sell, according to Experian Inc.
The Department of Housing and Urban Development and Great Western Financial Corp. are selling foreclosed homes for the lowest prices, 13.5% and 10.3% below market value, respectively, the credit scoring and realty data firm said. But Great Western is holding homes for only seven months, considerably lower than the industry average. The shorter period represents a significant cost saving.
In contrast, American Savings, which is selling foreclosed homes for only 2.8% below market, is holding them for 17 months.
Fannie Mae and Freddie Mac are also discounting their foreclosed property less than the industry average. The agencies are selling 3.6% and 4.6% below market value, respectively.
Foreclosed homes were hardest to unload in Sacramento County, where homes remained on the market for 22 months, and sold for 10.6% less than market.