BTW, I checked the listing on Driscoll and as a short sale it was contingent multiple times above 600K so apparaently they had no problem getting offer in that range before it went back to the bank. They just couldnt get the short sale done so it went back to the bank.
Additionally I have spent the last couple weeks showing properties in 92117. That house would have a couple dozen offers if it was listed at 535K.