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To: elmatador who wrote (57359)	11/2/2009 1:21:56 PM
From: Lazarus	Read Replies (2) \| Respond to of 218008

A foreclosure is when the lender/bank takes possession of a home due to the borrowers failure to pay. A short sale is when the borrowers (who are usually in default and upside down) offer up the home at market price, yet remain the owner's of record and are often occupying the home. EX: they have a mortgage of $350,000 Current Market Value = $200,000 Offer is made by a Buyer for $200,000 The offer is then submitted to the lender and the lender decides whether or not to sell the home "short" of the amount owed by the borrowers or proceed with foreclosure (which adds substantial cost to the lender/bank).