Do the banks prefer short sale or foreclosure?Banks prefer short sale vs foreclosure. They net more money in short sale. Most importantly, the listing agent must know how to negotiate on behalf of the seller, and not send multiple offers to the bank and let the bank choose. The bank is not the seller of the home. The seller is. The banks just approved the loss.April 11 2010 - San Jose00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.