It's definitely happening.

5209 BUFFALO AVENUE, Sherman Oaks, CA 91401
(MLS # F1726452)
I know that we've heard the foreclosure song over and over: "people who bought in the last two years will lose their homes... they'll just walk away... the houses were just not worth what they paid..." But then you see nothing but national numbers and it just doesn't feel local, it doesn't seem like it's happening here in your own backyard. Well, it is.

This 4 bed/4bath, 1,910 sq.ft. house was purchased in November '05 for $850k. Zillow estimates it at $905k (Zillow really needs to revisit their algorithm because they are way off these days). Anyway, let's look at the listing description:

"Bank owned and priced for immediate sale! Great 4 bedroom and 4 bath home on a good street with large family room and wet bar area. Kitchen opens to dining area and yard. Good size bedrooms. Large pool. Minor work needed. Sold as-is. Vacant with keybox. Tax rolls show 1,646 square feet the home has been measured to 1,910 square feet. Additions are without permit. Available until reported pending!"

So what is the price for an "immediate sale"? $680k. And, according to Property Shark, Countrywide is owed a little over $721k. Here's the prior sale details:

05/22/07	$721k	Trustee's Deed		Recontrust Co	Countrywide
11/18/05	$850k	Grant Deed		Flores, Marcelino	Minaya, Manuel
04/26/05	$749k	Grant Deed		Vartan RobertTrust	Flores, Marcelino
09/15/04	$617k	Grant Deed		Tannenbaum, Wayne	Flores, Marcelino
08/06/03	$455k	Grant Deed		Rosenfeld, Maury	Tannenbaum, Marla

$680k for a house that big, in a decent neighborhood, will definitely put downward pressure on the existing listings. Like this comparable home just up the street:

5338 BUFFALO AVENUE, Sherman Oaks, CA 91401
(MLS # F1726282)

It's listed at $829k (!) with a Zillow estimate of just $665k. You should check out this particular listing for yourself. Bizarrely, the agent posts 20 photos including street signs, Trader Joe's, the mall, the high school, a park ...