REO starting to punish Seattle real estate...

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Is that the auctions where they auction it, and if they don't get a good enough price, just don't give it to the highest bidder?

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No, that's the private auctions that auction.com runs.

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When they have these auctions, and the trustee approves of the auction, do the owners then have to sign off?

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Nope. This is a trustee sale on the courthouse steps - in other words, a foreclosure auction.

ETA: if by "owners" you mean "lien holders", then yes, they do get to set the minimum bid. But even just $1 over their minimum bid clears the auction (which is the case in the majority of sales). If the auction doesn't clear the minimum, then it reverts to the lien holder.

My thread title is misleading, because technically the property in question here is not an REO. But my overall point is that very few properties in this price range are clearing at the auction, and are thus going REO and are now going to be affected negatively by the auctions setting the new (much lower) prices.

You guys made a market around the real price - $619K. Almost a 50% loss for the lienholder. $147 sq/ft. IMO, that is at or below replacement value while valuing the land at zero. If I wanted to live in that neighborhood, I'd be very happy about this transaction.

I'm good.

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If I wanted to live in that neighborhood, I'd be very happy about this transaction.

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The prices will go down even further once word gets out a the other homeowners kill themselves. 50% losses are unreal.

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No, not yet. But I am all over the situation in my neighborhood. I think I have a good chance of getting a great deal in the next 3-6 months that will put my family in a position to prosper. My goal is to buy a better house at least 25% cheaper than I sold my old one.

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nice. I am looking at this stuff right now. There is a ton of stuff on the market, but only a few REOs. But I think that is going to change.