Why would a lending institution accept a short sale?

One of the reasons banks are allowing people to short sale their homes  is because of programs like the Making Homes Affordable program/ Home  Affordable Foreclosures Alternative or HAFA. Created by the government  helps homeowners sell their undervalued homes waiving all deficiencies  and in some cases even provides relocation assistance funds to help them  move.

Another reason a bank or mortgage company may accept a short sale is  that they do not like excess inventory and bad loans on their books;  therefore, if they see an opportunity where they can sell the property  without a huge loss, they will most likely do it.

If you are facing foreclosure a short sale may be an option for you. You  could possibly avoid the foreclosure process and in a lot of cases the  lender will forgive a portion of your current loan. Although this sounds  like an easy way out, there is a catch. Short Sales have a high  probability of damaging your credit and the lender may not agree to a  short sale or to forgive part of the loan. Most lenders will only  entertain the idea of a short sale if you are several payments behind or  if you have gotten a default notice and they will not always forgive  the balance of the loan.

Not all sellers nor all homes qualify for short sales. Contact the  lawyers from Attorneys and Debt Counselors today  to find out if a short  sale may be a viable option for you.