Home Sales in U.S. Hostage to Holders of Junior Liens

Home Sales in U.S. Hostage to Holders of Junior Liens

Jacob Kepler/Bloomberg

Banks, facing an onslaught of pending foreclosures, are turning to short sales because their losses are about 15 percent lower than on repossessions, which can take years to complete while taxes along with legal, maintenance and other costs accumulate, according to Moody’s Investors Service Inc. in New York.