The asking price of $120,000 is due to the fact that the agent discovered that the Bank will only accept an offer close to $120,000. It went under at $85k, and back on at $120k after 4 months. It is very typical to see an increase after the first short sale offer falls apart. It never sold. It only had a signed offer. Title was never conveyed. For an overall picture, see the market history below:
Market History for 30 Newman Rd U:4, Malden, MA 02148 Prev
7/6/2011 Listed for $109,000
7/27/2011 Price Changed to: $99,000
9/5/2011 Price Changed to: $85,000
9/9/2011 Listing Alert Flag set to: Yes - Accepting Additional Offers
11/2/2011 Status Changed to: Extended
12/5/2011 Listing Alert Flag set to:
1/5/2011 Price Changed to: $120,000
Lastly, just because the bank is looking for a certain firgure, it doesn't mean they will get it. If you are interested in the unit, find a good agent in Malden, and make an aggressive play for it!
Best of luck.