I don't know if your buddy should be bragging about his deal here.. he saved a whole 10% off peak prices just a year and a half into the (probably largest RE) crash in a place you call 4closure ranch. Surely this trend is just starting.

He's wasn't bragging about the deal. He "needs" a home for his family, doesn't want to rent for $2500/month, and isn't cash strapped with a mortgage. He merely asked me for my opinion (of which I told him the hemmorage is just starting). He was more surprised about these screwed sellers would let things get out of hand like this. Like I said, he's probably going to back out of the deal because (1) he wants a home soon (2) doesn't want to wait for the bank approval process for a short sale (they are telling him it will be weeks) (3) doesn't think 4sranch is a good area in hindsight. I think he has his eyes on Carmel Valley now.