More and more lenders are apparently looking to avoid the foreclosure process, opting instead to sell the distressed assets for less than their original loan amounts.

That’s the latest, at least, from Lender Processing Services Inc. (LPS), which revealed short sales accounted for nearly one-quarter (23.9 percent) of home purchases in Jan. 2012, which is more than the monthly foreclosure tally (19.7 percent). All told, based on these statistics, short sales and foreclosure sales accounted for more than 40 percent of all real estate purchases to start the New Year.

There are many reasons for the uptick, most notably the massive costs that lenders incur because of foreclosures, particularly at such a high volume. In fact, some lenders (Wells Fargo and JPMorgan Chase & Co.) are so eager to avoid the foreclosure process that they are offering distressed homeowners as much as $35,000 to accelerate their departures. In addition, streamlined short sale procedures have been introduced that compel loan servicers to respond to all short sale offers in 30 days or less.

So if a bank is willing to reduce the price on a desirable home, incentivize the homeowner who can no longer afford his or mortgage to relocate and get a “non-performing” asset of its books as soon as possible, it appears that everyone — all things considered — comes out a winner. Even neighborhoods, which have been scarred with the black marks of foreclosure and its deleterious effects, and in turn their collective property values, appear to benefit from short sales.

But you be the judge: Check out available short sale homes for sale in your neighborhood today at Foreclosure.com. Yes, we have short sales — along with many other distressed property listings — available on our site, many of which are 30 to 50 percent less than market value.

But, of course, there is a catch.

The Mortgage to Lease Program will offer select underwater borrowers — those who can no longer afford to pay the mortgages on homes that have lost significant market value — in Arizona, Nevada and New York the option to transfer their property title back to the bank and have their debt/mortgage obligations wiped clean. In exchange, the borrowers will agree to remain in their homes as renters, paying BofA a monthly fee that is less than the mortgage payment.

It’s a forward-thinking initiative that BofA executives, according to a Reuters report, hope “evolves from a pilot into a more broadly based program, we also see potential benefits from helping to stabilize housing prices in the surrounding community.”

So who is, and who isn’t, eligible for the BofA Mortgage to Lease Program? MSN Money breaks it down to borrowers who:

• Have a mortgage owned by BofA (no securitized loans).
• Are at least two months in arrears and at significant risk of foreclosure.
• Live in the home (investment properties aren’t eligible).
• Have a first mortgage only (second mortgages or lines of credit aren’t allowed).
• Live in New York, Nevada or Arizona.
• Can afford the proposed rents.
• Have tried — or have not responded to efforts to get them to try — alternatives like loan modifications, short sales or deeds in lieu of foreclosure.

It’s important to point out that BofA apparently does not intend to become long-term landlords. After all, it’s in the money-lending — not house-renting — business. Therefore, the homes in the program are expected to be marketed and sold to investors in the near future, who will no doubt jump at the opportunity to pick up an investment property that comes with a steady monthly revenue stream.

At this time, distressed BofA homeowners cannot apply for the Mortgage to Lease program — it will be offered to them in the areas, and based on the criteria, mentioned above.