What is the advantage to a bank in selling a note vs. foreclosure?

[Caffeine.addict]

@Really_Not_All_That_Bright

I think you misunderstand the process. A short sale is what the bank does to avoid the hassle of foreclosure.

Just to refine this a bit more, the short sale process is usually begun by the homeowner and he tries to get the bank to agree to the process.

[Cartoonacy]

@Stoid

No, that’s not how it works. Technically both are selling “short” meaning less than the bank is owed, but they are not the same.

A short sale means the owners are asking the bank to let them sell their property to a willing buyer for less than they owe on the note, forgiving the balance. This spares the owners the foreclosure on their record.

So a note sale is done by the bank, and a short sale by the homeowner?

[not_what_you_d_expect]

I wonder if there is a way for me to get my loan sold to someone as a note sale?
I am struggling to continue the payments, but would be fine if I could just get my payment lowered by $400.00 a month.

Fannie Mae won’t work with us because we haven’t missed a payment. They’re going to force us to quit making payments and we don’t want to do that. We have tenants, so that would hurt them and our credit.

[Really_Not_All_That_Bright]

@Cartoonacy

So a note sale is done by the bank, and a short sale by the homeowner?

Yes, but in the latter case the bank has to agree to it, whereas the homeowner doesn’t have to agree to sale of a note.