Foreclosed homes sell at about a 6% discount to their open-market value, according to a recent study by Experian RES.
The study compared foreclosed home sales by Freddie Mac, Fannie Mae, the Department of Housing and Urban Development, and the Veterans Administration to sale prices in the open market. The study focused on 14 major markets.
Foreclosure sales by Fannie, Freddie, and the government agencies account for the bulk of repossessed-home sales.
Orange County, Calif., enjoys the lowest discount level, at 3.1%; San Bernardino County, Calif., has the highest, at 10.7%.