When I’m looking at a property and 7 out of the 8 most recent and similar closed sales were sold by banks then at that point the banks are the typical seller; and their “must sell” situation is the typical motivation.

“The drop” is there whether a property owner is compelled to book the loss or not. Whether they choose to acknowledge it or not doesn’t change a thing.

They can’t sell and they can’t leave without booking the loss; all they can do is continue to make their payments and hope that the next economic cycle brings their position back into the black. At this point there’s no rational reason to believe that the next cycle will restore those losses.

The principle rule in real estate is that you make your money when you buy, not when you sell. The people who bought high are now paying for their foolishness.