There are many possibilities. For example, the home may be encumbered to the tune of $210,000 when, in fact it is worth only $200,000. An investor, or someone with credit issues, may be willing to buy the encumbered property for $1,000 and to take over the payments in order to avoid the hassle of applying for a new loan. The truth of the matter is: No sane person or institution will â€œsellâ€ a $200,000 property for $1,000. There is always a â€œbehind the sale reasonâ€ when its happens.