Why Would a Lender Agree to Accept a Short Sale?
Lenders have ample incentive to negotiate a short sale with a distressed homeowner. First of all, if the lender has to take back a property pursuant to a foreclosure sale, the lender would become responsible for a variety of costs, including property maintenance, utilities, and HOA fees. They also risk destruction of the property by vandalism. Every month that goes by during the foreclosure process, the bank is losing money. Once the property has been foreclosed on, they must hire a local real estate broker to sell the property. Add up all the months and expenses for the foreclosure process, and it is very expensive for the bank. This is why the lender has a good incentive to work with a short sale. They are less costly, and the bank can move the property off its books much sooner.
