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It was sold at a foreclosure auction - you may find that it was the bank that bought it for that price (price of the outstanding loan) and then they sold it on. You could always try to find out who the buyers/sellers are.
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http://www.redfin.com/CA/Cypress/5556-Orange-Ave-90630/home/3992934
Bought at $401,314 and sold at $304,000 six months later. Property looks good from outside. Can some one throw some light on what do you think happened here?