Thanks for the reply, but..

You are saying banks don't necessarily have to recoup the amount owed to them. That explains a lot.

When you say "the local agent who handles the property has huge influrence on the price.  (This is where you can get good deal from insider.) " I am unclear what this means. When the properties are auctioned off publicly, doesn't a bank rep participate in the bid?　How do you get good deal from insider? Or are you talking about the REOs?