Why would a short sale be preferable to a lender than foreclosing?
Foreclosure is an expensive process for a lender. Banks are in the business of making loan’s, in general they don’t want to possess the property. You also must remember that not only is foreclosure a long and arduous process for the bank but it also costs money. If the lender goes through the entire foreclosure process significant costs will accrue – posting the notice of foreclosure and advertising the foreclosure sale, (liquidation, holding, and selling) plus rehab, selling expenses, holding costs, administrative costs, and management costs.
