I dont understand this Auction listing

[Diane G.]

Please help me understand this auction listing - the property would be worth close to $1M on open market. The current owner bought long time ago and has only $400K in mortgage.. And it is being listed at $400K... Apparently, bank just wants to take back what it is owed.... But why would the owner let a $1M property go for $400K? Why did he not sell it on the open market himself?

2nd question - how do you run a title search PRIOR to bidding?