There will never be a lack of bad information available regarding short sales. However, I would like to clear up a myth that I still hear quite often which states that, banks would prefer to foreclose over doing a short sale .

The truth is that banks and the government do not want to see properties in foreclosure. Since many people do not qualify for loan modifications, short sales are often the best options available to them. Keep in mind that banks created short sales. Foreclosures cost banks a lot of money so the option of a short sale is more enticing to them. In fact, many banks will delay a pending foreclosure sale date if there is a short sale contract on the property.