Short sales and foreclosures are two financial options available to homeowners who are behind on their mortgage payments, but the timeline and consequences are different in each situation. In a short sale, a bank accepts that it won’t recover its outlay, and it’s considered the ****ter option going forward with handling a separate transaction. Unlike a short sale, foreclosures are initiated by lenders only. A foreclosure is when the lender seizing the home after the borrower fails to make payments, and forces the sale of the home, not to lose on the initial investment of the mortgage.
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