According to a recent MSNBC.com article,as a way to assist struggling homeowners avoid foreclosure , lenders are accepting more short sales.Short sales and foreclosures increased in 2010, but in 2011, short sales increased 26,000 nationwide, at at the same time foreclosures dropped by 255,000, according to Hope Now data.Since statistics showed banks make more money off a short sale against a foreclosure ,they are now more open to the idea to accept short sales than in the past.
The average price of a foreclosed home in the second quarter of 2011 was $164,217 compared to $192,129 for a short sale. In addition , foreclosures cost more in legal and administrative expenditures.Also ,since short sale properties sit vacant less time than foreclosures ,the carrying costs are shortened and vandalism is curtailed sharply,helping properties near by keep their value.
Source: “Increase in Short Sales Give Market a Little Breathing Room,” MSNBC.com (Dec. 29. 2011)