REO, short sales sag

RealtyTrac: Q3 discounts best in 5 years

The expiration of the homebuyer tax credit and the robo-signing controversy dented sales of bank-owned and foreclosed homes during the third quarter, but those willing to brave the uncertain environment picked up deals not seen in nearly five years, data aggregator RealtyTrac said.

RealtyTrac estimates that sales of bank-owned (REO) homes in July, August and September fell 26 percent compared to the second quarter and were down 35 percent from a year ago, to 113,933.