We had a few repossesions when I worked down in Spain and we always made sure the buyers understood that there was basicly no room to make any offers on those “units”. We didn’t sell one repossesion but other things sold like hot butter. What amazed me back then was how uninterested the banks behaved. The only time the banks seemed eager to discuss an offer was when a client that was in array or whatever it’s called and they still had possesion of the property.
I think it comes down to that as long as they could hide their real estate at inflated values they did it.
*edit itsme the impression I got of brittish sellers was that they understood the situation the market was in and was always willing to discuss things as adults. They never took offers as insults but rejected them in a civil manner. Spanish sellers could become very angry about offers being made that in all honesty was sensible ones.