What was foreclosure buying like during housing bubble?

[Eric P.]

I was too young when the first bubble popped, I'm curious what buying during that time was like?  I've followed some of the sheriff sales in the area but it seems like they're really only getting about a 20% discount which simply isn't worth the risk to me without a walk through, they all seem to be long abandoned and needing major work.

It seems like during a bubble pop you'd be able to buy a foreclosed house directly from the bank, perhaps even able to finance it, and could you really get a $250k home for $125k in a situation like that almost move in ready?

[Lisa Abrams]

I have been selling real estate for over 25+ years, so I sold in the housing crisis. The main focus of my business was in the Washington DC metro area and Southeastern Florida. Florida was "decimated" We had over 60 months worth of inventory. DC had approximately 10-12 months. The banks were not "giving away" properties as many would like to believe. They priced them at a discount, but not a huge discount, 10-20% off market. They were calling the shots in the transactions and sold the properties "As Is" and at their "full list price" You could not purchase directly from the banks, they were listed on the MLS. The biggest problem is, the banks have no local knowledge of the local real estate market. They are depending upon an agent that is already stretched too thin with too many listings to even respond. Most of the listing agents never even viewed the properties. The condition of the properties was less than ideal, many homeowners destroyed or pilfered the house before moving out...Not to mention we also had to contend with squatters.