Why Do Short Sales Work?

For the mortgage holder there are real advantages to getting the property sold, even at a discount, while the borrower is still in the home. The costs to maintain the property are paid by the borrower and the borrower has an incentive to keep the property in good shape.

The foreclosure process can get very unpleasant, particularly towards the end of the process. Borrowers have been known to remove built-in appliances, cabinets and plumbing fixtures on their way out.

In the end, it’s usually to the mortgage holder’s financial advantage to accept a short Sale as opposed to completing the foreclosure.