What is a Short Sale? And, Why Would a Bank Say Yes?

We are often asked, "What is a short sale and why would a bank allow it?" A short sale is simply when the bank allows you to sell the property for less than what you owe. Why do banks allow this? It is far more advantageous for banks to accept a short sale than to foreclose. As long as the short sale nets the investor more than the foreclosure, a short sale is better for the bank.