Some good stuff here.
Basically the bank wants the most they can get, period.
That being said, most of the banks have had a reality check and some are actually hiring people to get the deals done. The general rule of thumb is they want to net out (after all costs, selling, escrow, taxes, HOA, back payments, etc) no less than 80% of FAIR MARKET VALUE, not original note (sorry Chris) You should figure selling and closing expenses between 6-8% or more of the purchase price, so in reality you should be able to get a deal approved around 10% below market price. The big question is what is fair market value?.
If you are working with a competent agent or broker, they should be able to do a market analysis and get a number close to reality.
As others have said, CASH is King, but the bottom line is the banks wants to lose as little as possible.
Bear in mind, banks DO NOT want to foreclose. It is really really bad for their bottom line and it has a negative impact on their cost and ability to borrow money to lend. At the end of the day, they will take a reasonable offer so they donâ€™t end up with a non-performing asset
I would be happy to sit down with you and go over what you are looking for and figure out the best way to help you make that happen.