Why do banks and lenders accept Short Sales?
At first it seems hard to believe that your Lender would be willing to so deeply discount the sale of your home until you take the time to look at the situation from their perspective. If a Lender forecloses on a home they must repossess it, make repairs, change the locks, and pay for a variety of legal fees. A Short Sale costs less than what it costs to foreclose on the home, so the Lender actually saves money. Another reason is that in this distressed housing market with so many foreclosures, Lenders don’t want too many foreclosures (or bad debts) on their books. This prevents them from borrowing more money from the Federal Reserve, so they are unable to give out new loans to increase their revenue streams.
