| Short sale foreclosure involves property that has been | | | | The quantity of money received from the Federal |
| returned to the bank because the mortgagor wasn't | | | | Treasury is predicated on lenders' performance. If |
| able to maintain their loan payments. The bank takes | | | | bank shoppers are not paying, the Feds can reduce |
| possession of the property and is responsible for its | | | | credit limits or cease lending altogether. |
| care till it is sold. | | | | By law, banks are only allowed to hold a particular |
| Short sale foreclosure also pertains to a variety of | | | | number of foreclosed properties. With the consistent |
| exchange where banks allow borrowers to sell their | | | | in-flow of mortgage defaults, many lenders are fast |
| home for under is owed on the mortgage note. This | | | | approaching their quota. Short sales give banks the |
| option is generally only offered when all other attempts | | | | chance to liquidate property inventory. |
| to forestall foreclosure have been exercised. | | | | |