The bank is allowing a person they let borrow money, and who is now not paying them back, sell the home at a loss to the bank. The bank is going to want to make sure whomever buys it can get a loan. The bank will only accept offers that are accompanied with a letter from a lender stating in their professional opinion you can get a loan to buy it. If you can get that, you can make an offer on any house. Remember, the current bank is not giving the new buyer a loan, it will be some other bank. The current bank is washing its hands of the train wreck to some other bank to deal with.