San Diego Short Sale and Foreclosed Homes

 
 
Informational video on the short sale options available to homeowners facing foreclosure in San Diego, CA.
 
 
Map based search of san diego california real estate including short sales, reo, foreclosures, traditional sales and for sale by owners.
 
 
I just found out the property I was making an offer for my client on last night has well over 30 offers!! Asking price was $39,000 on Short Sale. Many offers came in around $100,000. 

My Question is:
Do you think Sellers should be underpricing their Short Sale Homes by 10%, 20% or ?
This was underpriced by about 70%....Why?

Causes a stir for nothing, at least that's how I feel about it.  When I told the Listing Agent it was severely Underpriced, he responded, "That's how the Seller wanted to price it."

How do you feel about it and why?