As a business owner, I have seen many home owners lost their homes that could afford to keep their home if the banks would lower their house to the same market value as a short sale.
The banks would rather sell the house to a total stranger in a short sale instead of allowing the original owners who has invested in their property to keep their home at the same fair market value short sale that they are giving to the total stranger.
Also banks would rather to foreclose on homes and let it sit their for investors to buy it at a cheaper cost or short sale.
Again, banks should allow home owners to take advantage of the fair market value short sale. It makes no sense to put a working family out of their home if they can afford to pay for their mortgage at that cheaper cost.