Big banks and short sales

That school of thought is brought up often. Many of the brand name banks are just servicing the loans for the investors. These investors could be foreign banks, domestic pension funds, hedge funds and others. There's plenty of chatter that the servicing banks prefer to delay the short sale processing rather than kill the goose that lays the golden eggs.

That may be why HAFA provides incentives to the lenders for completing short sales. It would be interesting to get an authoritative answer from someone in the know.