Any ideas why a bank would undervalue a house that they refinanced 6 months ago by 75 for a short sale?

Malena
Possibly the bank was ready to cut their losses. If they feel it will cost them more in repairs and holding time they will except a short sale.

Charise
what's a deed and lue? I guess you mean a Deed IN LIEU of foreclosure. talk to a Title/Real estate attorney for professional advice. http://www.montgomery-county-homes.net/

Gertie
Because the market dropped that muchBecause the appraiser over evaluated the home beforeBecause they dont want to lose moneyBecause the bank is trying to protect itself

Kraig
Most lenders would rather do a short sale than go to foreclosure. If they took the latter route, they would lose money on attorneys fees, court costs, etc. plus lose more money while the house is waiting to be sold at the foreclosure auction. It would be more beneficial to them (most of the time) to do the short sale and get the most money they can.