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Banks Backing Short Sales

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The big banks all signed a huge settlement this year with the states and the federal government that required them to help keep distressed homeowners in their houses. Instead of focusing on loan modifications or principal reductions, they're throwing 68 percent of their money behind short sales (allowing owners to sell for less than what's owned on the mortgage). A new report says that short sales are "the dominant type of relief offered in California by the big banks." [LAT]