Think Fast…Think Short Sale

While a lender may not find this the optimal means to stop a bank foreclosure, you may be able to convince them to agree to a short sale.  This is where your home is less valuable than the amount you owe, but the lender agrees to allow you to pay them the amount it’s sold for instead of the outstanding debt.  The reason they may allow this is that lenders aren’t in the business of buying up homes.  It costs them time, money, and resources to repossess and sell a home.  To avoid this, the lender may find that it will cost more in the long run to repossess than it does to stop the bank foreclosure and simply accept a short sale.