Will a Lender Accept a Short Sale??

It is 100% accurate to state that lenders are not going to be jumping up and down thrilled to be processing a short sale. How could they be? They are taking a loss. However, they are also aware that a foreclosure is usually a far more time consuming and costly option, and is generally right around the corner. Simply put, lenders are in business to make money. In today's real estate market, where homes are worth substancially less than they were just a few years ago, the lenders realize it is in their best interest to liquidate the problem and to do so as quickly as possible.

By pursuing a short sale, generally a property can be sold and the loan taken off their books fairly quickly, whereas, if they pursue a foreclosure they run the risk of the process taking a much more substantial amount of time and at a much greater cost. The property will also be left vacant which can result in vandalism and deterioration. And often time, owners will even "damage" or "destroy" the house just before the foreclosure sale as form of retribution to the lender. In this situation, the lender does not have control of the situation, and, because of this, usually take large financial hits.

Simply put, these are some of the major reasons why lenders drastically prefer a short sale route instead of foreclosure. They still get the loan off of their books, but at a much cheaper rate and with much less hassle.