They have to foreclose and put it up for auction when the buyer defaults. A family on our street sold their prior house for something like $280,000 a couple of years ago. They found out it was foreclosed on and sold at auction for $40,000 IIRC.
When cash is king!
Around NW Montana there a glut of McMansions in the $400,000 plus range. They are not moving.
Any decent houses under $200,000 are snapped up very, very quickly. We, payed $135,000 for our house 4 years ago. Recently it was suggested that I put a $199,000 sticker on it. It would sell right away, but then I’d have to search out one of those very rare house in the $200,000 to $250,000 range. Anyway I like my little house!