Mortgage lenders commonly force homeowners requesting cooperation for a short sale to go into foreclosure, even when a short sale would allow the bank to recover more of its investment, according to The New York Times. In several cases reviewed by the newspaper, Bank of America rejected a short sale, foreclosed, then sold the home at auction for less than the short sale's offers. A little-noticed change in U.S. accounting law last year has the effect of encouraging banks to foreclose rather than approve a short sale, the newspaper notes.

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