As a result, the buyer canceled their contract and started looking at other houses. We put the property on the market and received a 140k offer. We submitted it to the bank. The bank ran their numbers and said that the minimum they would accept was 141k. As a result, the bank lost 9k. Actually, it wasn't the bank that lost that money.
The loan was owned by a Wall Street Trust. Common owners of these trusts are Pension Funds like CALPERs. So, as a result of this bank's incompetence a person's retirement was affected. This is a good example of why an experienced, competent short sale agent is so important. They can make the difference between success and failure on a short sale.