They say that the trend is a result of the slumping economy, which is causing massive job losses, and declines in real estate values.
In what are called ":short sales,": lenders agree to accept less than the outstanding balance of the loan.
The transactions are becoming more popular since they offer an alternative to foreclosure that can benefit borrowers and lenders alike.
For borrowers, it’s a way to get out of debt and avoid the credit impact of foreclosure.
Banks may turn to short sales to get as much money as possible from borrowers who can’t afford to pay off their loans.