What are the differences between a foreclosure and a short sale?

A foreclosure and a short sale are two different options for dealing with a home loan that is in default. A foreclosure happens when a bank or other mortgage lender takes possession of a house from a homeowner who has defaulted on their loan. The lender will then put the house up for sale and use the sale proceeds to pay off the loan. A short sale is an alternative to foreclosure. In a short sale, the bank agrees to allow the homeowner to sell the house at less than the amount owed on the loan. The proceeds from the sale are used to pay off the loan and whatever remains is forgiven by the lender. The main difference between a foreclosure and a short sale is that with a foreclosure, the homeowner loses the house and has no control over the sale process. With a short sale, the homeowner retains control of the sale process and may also be able to negotiate loan forgiveness and a reduced debt amount with the lender. In New Hampshire, the law regarding foreclosure is governed by the Security Deposit and Foreclosure Law. This law outlines the process that a bank or other mortgage lender must take in order to foreclose on a property. It also outlines certain rights a homeowner may possess during a foreclosure process and defines when and how a foreclosure sale must occur.

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What are the differences between a foreclosure and a short sale?

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