Benefits to the Lender of a Short Sale:

1. The bank is in the business of loaning money not home ownership. Having homes ties up their resources from being able to lend.
   
   
2. There is tremendous cost to the bank in a foreclosure. They would rather choose a short sale than incur the foreclosure costs.
   
   
3. The home remains occupied until the short sale closes and the seller has incentive to keep the home in good shape.
   
   
4. Banks understand that buyers give lower offers on foreclosed properties and they do not want to depreciate the property more through the foreclosure process.
   
   
5. A short sale takes the loan off their books fairly quickly.