Why would a lender accept a short sale?

A lender will often consider a short sale because the cost and risk of foreclosure is so high. In order to accept a short sale, a lender will need justification. Justification might mean a substantial loss of income that would prevent you from paying the mortgage and therefore being forced in a position to sell the home. Another justification might be that the house is simply worth less than what you owe, and you cannot afford to continue making payments.

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