What is going on in these type of listing? Scam or untold secret?

[Leo Poon]

Hi BP,

Occasionally, I will bump into some weird listings on current price and historical sold price on the MLS. For instance, this property was sold for $244k in May 2018, and it is now for sale at $39k on Sept 2018. Who in the right mind will do that to take a loss? Also, this is not the first time I have seen a similar listing like this. My first thought was the bank is trying to buy back their foreclosures and eventually want to get rid of the property by selling at a deep discount, but this property was for sale by owner. Then my second thought could this be some sketchy way to make money off banks by some investors? The most recent sold price is almost always 5 to 10 times the amount of the current for sale price in these types of listing. Can someone shine some light on this mystery?