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What are the advantages of a short sale for the lender (the bank)?

April 26, 2017advantages Bank Lender sale short

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What are the advantages of a short sale for the lender (the bank)?

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The advantages of a short sale are less obvious for the bank or mortgage lender. These institutions are primarily concerned with recouping their financial losses on distressed loans. Thus, they may choose to allow a short sale if they believe that this course of action will result in a smaller financial loss than foreclosure proceeding. A short sale is often the best method for the bank to guarantee at least a partial return on a bad or defaulted loan.