Oftentimes yes. Lenders can be more motivated to approve a short sale as it can save them time and money as opposed to the foreclosure path.
However, according to RealtyTrac most major lenders are accelerating their foreclosure actions this year to the tune of about 25%. This more aggressive foreclosure activity is expected to result in a 60% increase in short sales.
While this may not necessarily bode well for property values in the near term, the market cannot fully recover until the distressed and shadow real estate inventory is absorbed.
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