Like I said, I wouldn’t assume this house was ever worth the $1.9mil or even close to it. The prior sale is just one piece of data and all the other obvious data contradict it.
It’s a bit unlikely that a buyer who purchased the property at an auction intends to live there. There’s probably a flip involved somewhere.
Having looked over the attributes of the other sales in Glendale that came up in public records I would imagine that a broker would relist that property somewhere in between the $1.15 and the $1.9mil. If they split the difference they could probably consider themselves to have done extremely well.
There are probably a couple of MLS listings on this property at various price ranges from the last year or so. Auction is usually somewhat of a last resort for a lender. If you had your broker look the listing history of this property up you might get a pretty good clue as to what the market really thinks about this property.