They owe no duty to a potential buyer.
However, it is more likely than the bank wanting the property so it could sell at a higher price, that the bank department responsible for foreclosures was not advised by the seller of the impending sale. A different department was likely handling the short sale approval from the department that processes foreclosures, and the foreclosure people just didn't know.
"Never attribute to malice that which can be adequately explained by stupidity"
Best move on it could be months before home is offered to general public IF it goes on the market OR it could be purchased by bulk investor buyer.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
I know you must be very disappointed & angry. A bank has no obligation to notify anyone other than the property owner & any entity that has a legal interest in the property, such as a second mortgage company, a lien holder,etc. The Bank's management decided that it could make more money selling after foreclosure rather than agreeing to a short sale. You could make an offer to buy the home from the Bank for your $135,000. However, if you do, I suggest that you put a time limit on your offer, as the Bank may not make a timely response.