You can see in the following deed that the house was bought at the top of the market. The issue probably isn’t about the money but since it was no longer a good investment it was decided to let the bank foreclose thus sticking the bank with over a 200K loss.
https://kennethloveaz.net/pdfs/brenda_church_original_deed.pdf
https://kennethloveaz.net/pdfs/kenneth_love_subtrustee_sale.pdf
https://kennethloveaz.net/pdfs/bank_suffers_200k_loss.pdf
Not surprisingly, Brenda Church was a probate attorney in Arizona who ended up receiving some bad press which resulted in her letting her attorney registration lapse.
Again, not surprisingly, she ended up with a few lawsuits against her.