Opportunity knocks, and knocks and

It's a frigid 36 degrees and pouring today in Tucson, so I'm inside trying to keep busy. Cruisin' around on the Tucson MLS to see what's new, I notice a new listing for a home in Cimarron Foothills Estates. It's listed for $684,900, then I glance at the opening line in the agents marketing remarks-
OPPORTUNITY OF A LIFETIME, HOME SOLD IN 2005 FOR $890,0000... that's a catchy line. It's listed for $684,900 today, and it SOLD for $890,000 in 2005, hmmm. Intrigued and skeptical I dig a little bit and find that this home did sell for $890,000 on 5/11/05, and it is for sale for $684,900 today. Wow, maybe this is an opportunity. Looking a little further, I see that unfortunately this is a bank sale, a foreclosure, and that the bank has had it for sale for 256 days. And it turns out that this new listing is just the latest in a series of price reductions & relistings that started on 4/21/06 when it was listed for $849,900, then reduced to $835,000, then to $819,900, and so on, until it's current price of $684,900. I haven't seen this home so I can't really say whether or not it's a screamin' deal, but the plot thickens. Prior to this home selling for $890,000 back on 5/11/05, it had also been on the market for quite a while, 146 days, and during that time the list price had also been gradually reduced -from $839,900 to $695,000- sound familiar, and still it didn't sell. So in an abrupt change of strategy it was re-listed and they raised the price $195,000, that's right they raised the price $195,000, from $695,000 to $890,000, and presto, it went under contract the very next day and sold for the new list price of $890,000. I'm not making this up. But how could that be? What was the buyer thinking when he plunked down the list price of $890,000 for this house that hadn't sold when it was priced at $695,000. The other interesting tid-bit is that this buyer went into foreclosure after owning this home for only 11 months. That's really quick and I'm really curious. I have a feeling there's a story behind that sale and I'll see what I can find out. But all that murkiness aside, this may still be an opportunity.