The seller, bank owned, does not have to lower the price. The buyer can make up the deficit, ask the seller (bank) if they will accept the lower amount, or let someone else buy the house. There are a lot of buyers interested in Central Florida homes (not sure about south Florida). So the banks will usually put the home back on the market. It probably will depend on how large the difference is in price, how long it has been on the market, and how ready the person in another state, who represents the bank is to get rid of the property. If the seller was about to lower the price anyway they may agree.

The seller does not have to meet the price as a rule. But, I'd be surprised if the bank will let a "ready, willing and able" buyer walk away due to a lower appraisal and wait for another buyer and go through the same situation again.