So now I understood why the bank appeared to be giving us a good deal on the house and why they agreed to a short sale quickly, but the purchase price and the $90K put this purchase right back to the price of every other house in the area. And it wasn't enough to make the house livable!
This probably means that they are adhering to the guidelines that they haven't established. A private https://en.wikipedia.org/wiki/Bank_run is able to establish their own guidelines; meaning that they make their own rules like what they lend on or what they not lend on. They will make that based upon what risk they are willing to take on.
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