And I just explained how the risk is "low". The loan is not upside down when they sell it; they have nominal proof that it's "worth" $2 million (through dubious valuations, because it's in everyone's interests to pretend that that that valuation is solid (this is where scruples come in).
You also do not have to take my word for it since I cited one example of many where this actually happened.
Update your previously inaccurate world view, please.
The entity purchasing it has to think they can get the asking price for it.
The bank will not take the risk acquiring it unless they think they can actually sell it for that.
So if the bank thinks they can actually sell it for $2 million and it is selling for $2 million, you’ve just described a $2 million property.
What I’m telling you is that those buyers disappear at any large scale because buyers of buildings like that need ROI. It’s only in really hot markets where deep wallet flippers will tolerate taking a bet on a building that cannot generate revenue to support the note.
What you linked to is a rare case. It doesn’t happen at scale because the system doesn’t close.
The bank cannot sell off a $2 million loan that is upside down a million.