Posted by Rich-CA on August 10, 2007 at 11:59:23:
Depends on the resale market. If the prices are rising, then the costs to get to the trustee sale might be recovered through a resale, so a bank would want the property. In cases when prices are stagnant or nearly so, then it might be useful to let the property go.
My sister in law works the data analysis section at Wells Fargo that handles foreclosures at HQ, they generally end up with the property unless the 2nd is foreclosing.