Why would a bank ever sell a property for less than the money owed on it? This is not what the bank wants to do, but sometimes they have to voluntarily take less than what the amount of the loan is. The only time they will do this is when it is obvious that the current value of the house can not cover the balance of the principle that was loaned to the initial homeowner.
See the rest here:Why Banks Do Short Sales and How You Can Profit
