The deficiency aspect is meaningless, and there are exceptions particularly for more current short sales, but distressed and foreclosed properties are usually well below FMV. That's what makes Warren hypocritical. Here is one articles run down on the "misfortune" discount:


•Residences that are abandoned, already in foreclosure and built before 1951 (26% average discount)
•Homes that are in the foreclosure process, but whose current owners owe less than the property's market value (26% typical discount)
•Properties that are abandoned and scheduled for foreclosure auction (25% average discount)
•Homes that are bank-owned and vacant - i.e., the previous owner or tenant has either moved voluntarily or been evicted (18% typical discount)