WHY IS IT MY BANK WOULD RATHER FORECLOSE THEN APPROVE MY SHORT SALE.

 Contrary to what many believe; Banks do not lend their own money.  Banks are middle men.   They service the loan rather then own it.  Hence the banks are collecting billions of dollars through service fees they charge on the loan.  If you do a short sale the service fees stop.  If the house goes to foreclosure the banks picks it up on their books at foreclosure and the fees continue through the REO process.  They are making more money in a foreclosure then if they would have agreed on a short sale and gotten the loan off their books.  If you are going to do a short sale you  need a trained professional to guide you through the short sale process.