You are right the bank might have put it on the market for 535K but they would have added new paint and carpet also to maximize thir return. The buyers would bid on it and it would sell for market value regardless of what it was priced at whichy in this case would be the 615K.
As a sidebar, I have been seeing lots of REO’s and short sales that were intially listed under market closing at prices 10 to 20% above th asking price. The market speaks volumes but some folks dont care to read what the market is telling them.
