Home Foreclosure Price Discounts Small

A typical lender-owned home in Los Angeles or Orange county sold for 3.9% less than its market value, according to a survey of 1996 foreclosure sales by Experian, an Anaheim-based financial and real estate information firm. The discount was smaller than expected, and the survey results “suggest that the negative impact of foreclosure sales on the market is not as much as previously thought,” said Experian market analyst Nima Nattagh. Lenders are selling homes at an average of 3.3% below their market price in Orange County and 4.1% in Los Angeles County. The sale of a foreclosed home takes an average of six months to complete.