Suppose I was the bank...
Guy1) Hey bank I want to sell my house for $1,000,000.00. Here is the deed, I owe $999,999.00 bank2.

Bank1) OK I'll take the house, here is $1.00 and $999,999.00 for bank2. Did you fuck up the house or burn it down to the point I can't sell it?

Guy1) yup to the ground I burnt it all.

Assessor) I'll charge Bank 1 $300 to go asses the price. Yeah currently this property can be sold for $300,546.00.

Bank 1) OK Guy1, you owe Bank2 $699,454.00 but here's your $1.00.

Guy1) your honor I need to file for chapter 11. I have no money

Guy2) Bank 1, I would like to buy this property.

Bank1) Sure that'll be $1,000,000.00.