Lenders are trying everything possible to try and get rid of their surplus of foreclosed properties. They are slashing prices left and right, which is causing some high powered bidding. Most of the price slashing is occurring in areas that were once at the peak of the real estate boom: Arizona, California, Florida, and Nevada.

Since last April over 660,000 properties were turned over to the bank, the figure for the previous year being 254K. At least one out of 4 sales, from January to March, was a distressed sale. Take that figure times 50% and that is the average found in parts of Los Angeles, Las Vegas, and Detroit.

Some banks are trying to sell homes previously valued at ranges of 350K for prices as low as 175K. This causes a frenzy with investors and also lets the banks have more selection opportunity; seeing which have better financing or can pay in cash. It also gives them a chance to perhaps make more money of off the frenzy then what they would have by trying to sell at the current value price. A Sacramento Realtor, Erin Attardi, says that "It's not uncommon to have 10 to 20 offers on one house, and for the house to end up selling for more than its market price,"

Janice Ziesig, the owner of Z House Realty Group in FL, feels that this new strategy is positive, saying, "It's actually stimulated the market,...Things are moving now — more so than they were."