Yeah, you're overthinking.

Ultimately, some bank is going to take the entire proceeds of the sale. The owner will pretty much be left with whatever he's left with and it won't change too much regardless. He's going to be plucked as clean as they can.

I don't feel too sorry for the bank either. They made a business decision and, I assume, have been collecting interest for all these years based upon their assessment of the degree of risk. Sometimes they guess right and make a pile, sometimes they guess wrong and have to take a loss.