It is more beneficial for lenders to do a short sale rather than go through foreclosure. In most cases, the loss the bank takes is significantly lower in a short sale. Foreclosure proceedings are expensive for lenders and take much longer than the short sale approval process. Banks are not in the real estate business. They are in the lending business. Their goal is to recover as much money as possible and as quickly as possible. Contrary to popular belief, the banks do not want your home.