Banks and other lenders generally agree to short sales in order to avoid having to foreclose on a property and take it into their inventory. Most lenders would rather cut their losses and avoid a long and expensive foreclosure process by letting the property go in a short sale for a discounted price.

By agreeing to a short sale, a bank or other lender avoids attorney’s fees, property taxes, and other costs associated with the foreclosure process. Also, a short sale generally is a faster and cheaper way for lenders to get rid of delinquent properties compared to a foreclosure.

Foreclosure Sub-categories