because it's a bank, not a real estate agent. they want to issue loans, not sell houses. the bank typically doesn't want to foreclose a mortgage if there's any

because it's a bank, not a real estate agent. they want to issue loans, not sell houses. the bank typically doesn't want to foreclose a mortgage if there's any chance you could continue making payments. if they do, the best they can hope for is just getting their money back. putting the house on the market for an extended period of time (and possibly paying an agent) just increases the chance that they don't get their money back. if you go with a smaller lender you might be able to negotiate better terms for foreclosure, but anything you require of the lender that increases their risk will be reflected in your interest rate.